Balanza de comprobación-Asientos de ajustes

Understanding Adjusting Entries in Accounting

Introduction to Adjusting Entries

• The speaker emphasizes the importance of simplicity in problem-solving, especially in fields like accounting, where complex methods can often be avoided.

• The accounting cycle begins with the journal entries, which are then transferred to the ledger for account balances.

The Adjustment Process

• Before preparing financial statements, account balances must be updated through a process known as adjustments.

• Adjustments start with journal entries that update accounts in the ledger and lead to an adjusted trial balance and accurate financial statements.

Types of Adjustments

• There are five types of adjustments:

• 1. Prepaid expenses (expenses paid but not incurred)

• 2. Depreciation and amortization

• 3. Accrued expenses (expenses incurred but not yet paid)

• 4. Accrued revenues (revenues earned but not yet received)

• 5. Unearned revenues (money received before services are performed)

Example of Prepaid Expenses

• An example is provided using a trial balance as of December 31, showing prepaid office supplies that need adjustment.

• Office supplies purchased on credit for $600 remain unadjusted in the trial balance despite usage during December.

Calculating Used Supplies

• To adjust for used supplies, the remaining amount ($320) is subtracted from the initial purchase ($600), resulting in $280 worth of supplies used.

• This leads to an adjusting entry that increases expense accounts while decreasing asset accounts accordingly.

Rent Expense Adjustment

• Another adjustment involves prepaid rent; a payment made for four months needs to reflect consumed rent by adjusting downwards from $4,000.

• The adjustment recognizes $1,000 as an expense for December since it has been utilized.

Depreciation and Amortization Insights

• Depreciation relates to long-term assets losing value over time; an example includes furniture valued at $20,000 with a useful life of five years.

• Using straight-line depreciation method results in an annual depreciation expense calculated at $3,600 or $300 monthly.

Finalizing Adjusting Entries

• The final adjusting entry records depreciation expense increasing while also reflecting accumulated depreciation as a contra asset account.

Understanding Asset Depreciation and Interest Expenses

Depreciation of Assets

• The furniture depreciation for December is noted, emphasizing that land is a durable asset but does not depreciate.

• On December 13, 2023, the company acquired land for $75, paying 75% in cash and financing the remaining 25% through debt.

Financing and Interest Payments

• Financing an asset purchase with debt typically incurs interest payments; in this case, interest is due within one year.

• Even if the business does not pay these interests by year-end (December 31, 2023), it must still record the incurred interest expenses.

Adjusting Entries for Interest Expense

• An adjustment entry on December 31 assumes one month of interest expense equals $20.

• This results in an increase in the interest expense account (a type of expense account) by $20 and a corresponding increase in accrued liabilities (interest payable).

Salary Payments Overview

• The salary expense account shows a balance of $2,400; however, employees were paid on December 15.

• Employees receive a monthly salary of $4,800, split into two payments: half on the 15th and half at the beginning of the following month.