Adjusting Entry

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Adjusting Entry

1. An adjustment made to a company's financial records at the end of an accounting period to assign revenues and expenses to the days on which the events justifying them occurred or on which the revenue was received, depending on the situation. For example, if a company is paid in advance for the purchase of some good, an adjusting entry may recognize that revenue on the day the good was delivered. Likewise, if the company was paid after delivery, it may recognize the revenue on the day it was paid. See also: Accrued Expenses, Accrued Revenue, Prepaid Expenses, Unearned Revenue.

2. Any correction to a previous entry in a company's financial records.
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b) Prepare any necessary adjusting journal entries and determine the effect of each entry on net income (record in a format similar to the following example).
The BusinessVision Accountants Copy also allows accountants to post adjusting journal entries with no interruption to the client's business.
We also request copies of prior-year financial statements and all adjusting journal entries so we can assess its internal accounting capabilities," he says.
Adjusting journal entries are easily edited to create an entry containing only net postings.
It prepared adjusting journal entries, tax-basis compilation financial statements and tax returns for Conour's business.