Financial Accounting-Adjusting Entries & Financial Statement

Master Adjusting Entries & Financial Statements: A Comprehensive Guide for Accurate Accounting and Reporting

Created by: Robert (Bob) Steele
CPA, CGMA, M.S. Tax, CPI

What Will I Learn?

• Identify the components of the accounting cycle and analyze the role of adjusting journal entries within it.
• Classify and categorize the four main types of adjusting journal entries: prepaid expenses, unearned revenue, accrued expenses, and accrued revenue.
• Apply the appropriate adjusting journal entries for each type and construct examples to illustrate their impact.
• Evaluate the distinguishing characteristics of adjusting journal entries and differentiate them from regular journal entries.
• Organize and manage data effectively using an adjusting journal entries worksheet.
• Analyze and interpret common adjusting journal entries encountered in financial accounting.
• Critically assess the purpose and significance of reversing entries and analyze common examples.
• Construct accurate balance sheets, income statements, and statements of equity based on the adjusted trial balance.
• Examine the interconnectedness of the balance sheet, income statement, and statement of equity in financial reporting.
• Demonstrate a thorough understanding of accrual concepts and their application in the adjusting process.
• Apply problem-solving skills through multiple-choice practice questions to reinforce comprehension and analytical thinking.
• Utilize mathematical reasoning to solve short calculation practice questions related to adjusting entries.

Requirements

• While there are no strict prerequisites for this course, a basic understanding of accounting concepts and familiarity with financial statements would be beneficial. However, even if you are new to accounting, this course provides a comprehensive introduction to adjusting entries and financial statements, making it suitable for beginners.
• Having prior knowledge of fundamental accounting principles, such as the accounting equation, debits and credits, and the basic structure of financial statements, will help you grasp the concepts more easily. If you have completed an introductory accounting course or have some experience with bookkeeping, it will be advantageous.
• Additionally, basic proficiency in using spreadsheet software like Microsoft Excel would be helpful, as we will be using Excel practice files to reinforce learning and apply concepts practically. However, if you are unfamiliar with Excel, don't worry, as we will provide step-by-step guidance and preformatted worksheets to assist you.
• Above all, a willingness to learn, engage actively, and apply critical thinking is essential for successfully completing this course. The instructor will guide you through the material, ensuring that you gain a solid understanding of adjusting entries, financial statements, and their interrelationships.

Target audience

• Accounting Students: This course serves as a valuable resource for accounting students at the undergraduate or graduate level who want to enhance their understanding of adjusting entries and financial statement preparation. It provides a practical application of accounting theory and concepts, preparing students for real-world accounting scenarios.
• Accounting Professionals: The course is also suitable for professionals already working in the accounting field who want to deepen their knowledge of adjusting entries and financial statement analysis. It serves as a refresher course and helps professionals stay updated with best practices in financial accounting.
• Bookkeepers and Financial Analysts: Bookkeepers and financial analysts who are responsible for recording financial transactions and analyzing financial statements can benefit from this course. It equips them with the necessary skills to accurately record adjusting entries and interpret financial information effectively.
• Small Business Owners and Entrepreneurs: Small business owners and entrepreneurs who manage their own bookkeeping or want to have a better understanding of financial statements will find this course valuable. It empowers them to make informed decisions based on accurate financial information.
• Anyone Interested in Financial Accounting: Individuals with a general interest in financial accounting, whether for personal knowledge or career development purposes, can enroll in this course. It provides a comprehensive introduction to adjusting entries and financial statements, making it accessible to learners from various backgrounds.