Prepayments and Accruals | Adjusting Entries

Adjusting Entries are an essential part of the close process in Financial Accounting. This video explains what Adjusting Journal Entries are and how they fit into the big picture of bookkeeping. If you're using the Accrual Basis of Accounting then watching this is a must!

You'll see how Adjusting Entries are split into two main groups: Prepayments and Accruals. You'll also find out how these are broken down further into Prepaid Expenses, Deferred Revenue, Accrued Expenses and Accrued Revenue.

I'm creating a whole mini-series devoted to this topic which will include worked examples for each of these four types of Adjusting Entry...

🔝 CLOUD ACCOUNTING SOFTWARE

FAQ

🚶FOLLOW ME ON

LEARN ACCOUNTING BASICS FOR FREE
________________________
DISCLAIMER

Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you!
________________________

#accounting #accountant #accountingstuff

[AccountingStuff]

Which type of Adjusting Entry do you find the hardest?

[partharora]

Learnt more in this 10 minute video than I did reading a 30 page chapter (having spent hours!). You have a gift! Keep these videos coming!!

[custmEditin]

A thousand times, THANK YOU FOR THIS! Your videos are so well organized, entertaining, easy to watch, and short and sweet without shorting us on information. This helps so many people (like me). You're the man...

[tbedre]

This guy is the goat. I can’t afford a accounting course so I’m learning from you and taking notes. Thank you 🙏🏾 Yoir changing lives

[carlosavina]

Watched your adjusting entries series right before my CH3 adjusting entries & closing accounts exam and I got a 127 out of 130 points.
These videos are so helpful, THANK YOU!!!

[venomx]

Just started my Accounting I class 4 June. I just wanted to say thank you. I had misconceptions about credit and debits, and your videos helped me a lot. Now whenever i don't understand the reading material, I come look to see if you have covered it first. Please keep up the great work, you are helping a lot of people.

[BrownStain_Silver]

I had to pause/replay this video several times to begin to grasp the concept. Very helpful video. Thank you!

[kossiviamouzou]

Honestly you're among the best here on youtube. Contents are well organized, easy to understand, and with little bit of fun moments. Great work, looking forward to learning all the accounting stuff from you, even the advanced topics

[deepikar]

I am a 19 year's old Indian doing my Us CMA and your videos are just awesome and soo much helpful to me, even I have recommend your channel to my friends, thanks a lot sir please keep on posting vidios.

[OnlyOneHope]

I just found your channel, and it's a lifesaver!! taking my first accounting class now, 3 more to go in my Business Administration degree program. It's so cool that you share your knowledge. I'm definitely purchasing your cheat sheets for my notes. Thank you

[Lily-vyyi]

I just found this channel and I'm in my last year of studying accounting. I thought maybe I might not graduate on time but these are way easier to understand and might save my future. Thank you.

[ghostfrom]

The simple analogies you use such as "Source" & "Destination" for dr. & cr. and "Buyer" & "Seller" for adjusting entries is top notch in book! makes working through accounting a thought process instead of a memory game! Thank you! @Accounting Stuff !

[noahkatt]

this was much better than the 3 hour lecture with my prof.. wow hats down! thank you

[TruleeBlest]

I appreciate your videos. You are a true educator, and you do it in a way someone like me can understand. I wish you were teaching my class. I'm not grasping much from the book. I'm glad I came across your videos. Thanks for sharing your gift.

[anatudor]

Thank you so much! During pandemic, while working from home & while my sweet little boy is sleeping, I need to be multitasking: working, cooking, learning and doing chores. It's so easy to understand from your videos and the fact that I don't have to be away from my son and still learning, it's such a big deal!! Thank you!

[Purple_pink]

I'm so grateful you popped up on my Tik Tok account. Now I'm here following you on YouTube. Your explanations are helping me understand the foundations of accounting. Thank you!

[warrioravi]

Thanks for this video! I'm getting close to an Associate's degree in Accounting, and this was a nice refresher on some of the basics.

[rachaelonweekdays]

I don’t know what I’d do without this channel! I always come here after watching lectures

[Lime]

I'm a new MBA student coming from a non-business background. Your channel is helping me so much get caught up!

[pilliprakash-ql]

I like how clearly and confidently he speaks everytime