Adjusting Journal Entries in Accounting

When are adjusting journal entries recorded?

a. before they are entered on the worksheet
b. after they are entered on the worksheet
c. at the same time that they are entered on the worksheet
d. either before or after they are entered on the worksheet as the preparer determines
Final answer: Adjusting journal entries are recorded in the general journal before they are entered on the worksheet.

Answer:

Adjusting journal entries are recorded in the general journal before they are entered on the worksheet. They are used to correct errors, allocate revenues and expenses, and update accounts. After being recorded, the entries are transferred to the worksheet.

Adjusting journal entries are recorded in the general journal before they are entered on the worksheet. These entries are made to adjust the accounts and ensure that they reflect the correct balances at the end of the accounting period. The purpose of adjusting journal entries is to correct errors, allocate revenues and expenses to the correct accounting periods, and update accounts for prepaid expenses or accrued revenues/expenses. After the adjusting journal entries are made in the general journal, they are transferred to the worksheet for further analysis and preparation of financial statements.