Financial Accounting-Adjusting Entries & Financial Statement
What you'll 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.
- 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.
NASBA CPE accredited course
National Association of State Boards of Accountancy (NASBA)
NASBA CPE credits: 16.0
Recommended NASBA field of study: Accounting
Program level: Basic
To earn NASBA CPE credits:
- Complete all videos
- Score 70% or higher on final exam
Glossary: Find PDF attached to the first lecture of this course.
Completion to obtain CPE should be accomplished a year after purchase date.
If you undertake this course for NASBA CPE credits, please complete the Self Study Course Evaluation.
This comprehensive course covers the fundamental concepts and processes of adjusting entries, posting them to a worksheet, creating financial statements from an adjusted trial balance, and understanding reversing entries.
The adjusting entry process is often misunderstood, as it is commonly assumed to be a means of correcting accounting errors. However, adjusting entries are an integral part of the accounting cycle and are built into the accounting system. They help us recognize revenue and expenses based on accrual concepts and timing differences.
In this course, we will learn to enter adjusting entries as of the end of the accounting period. These entries have both balance sheet and income statement components. Once the adjusting entries are complete, we will use the adjusted trial balance to generate financial statements, including the balance sheet, income statement, and statement of equity.
To enhance your learning experience, this course provides valuable resources, including downloadable PDF files, Excel practice files, multiple-choice practice questions, short calculation practice questions, and discussion questions. These resources will supplement your understanding and allow for practical application.
Your instructor for this course is a Certified Public Accountant (CPA) and Chartered Global Management Accountant (CGMA) with extensive technical accounting experience. He has a Master's degree in Taxation and is a certified post-secondary instructor (CPS) with expertise in curriculum development. You will benefit from his practical insights and instructional expertise.
Topics covered in this course include the adjusting process, posting adjusting entries to a worksheet, financial statement creation, and reversing entries. We will explore the components of the worksheet and understand how adjusting entries impact accrual accounting.
By the end of this course, you will be able to effectively navigate the accounting cycle, identify the different categories of adjusting entries, create financial statements from an adjusted trial balance, and understand the relationship between the balance sheet, income statement, and statement of equity.
Join us on this learning journey as we delve into Financial Accounting, Adjusting Entries & Financial Statements. Get ready for an engaging and educational experience. Don't miss out on this opportunity for continuing professional education (CPE).
Who this course is for:
- 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.
Through working with students from many different schools, Mr. Steele has learned best practices for helping people understand accounting fast. Learning new skills and finding the best way to share knowledge with people who can benefit from it is a passion of his.
Mr. Steele has experience working as a practicing Certified Public Accountant (CPA), an accounting and business instructor, and curriculum developer. He has enjoyed putting together quality tools to improve learning and has been teaching, making instructional resources, and building curriculum since 2009. He has been a practicing CPA since 2005. Mr. Steele is a practicing CPA, has a Certified Post-Secondary Instructor (CPI) credential, a Master of Science in taxation from Golden Gate University, a Bachelor’s Degree in Business Economics with an emphasis in accounting from The University of California Santa Barbara, and a Global Management Accounting Designation (CGMA) from The American Institute of CPA (AICPA).
Mr. Steele has also authored five books that can be found on Amazon or in audiobook format on Audible. He has developed bestselling courses in accounting topics including financial accounting and QuickBooks accounting software.
In addition to working as an accountant, teaching, and developing courses Mr. Steele has helped create an accounting website at accountinginstruction, a YouTube channel called Accounting Instruction, Help, and How Too, and has developed supplemental resources including a Facebook Page, Twitter Page, and Podcasts that can be found on I-tunes, Stitcher, or Soundcloud. Mr. Steele's teaching philosophy is to make content applicable, understandable, and accessible.
Adult learners are looking for application when they learn new skills. In other words, learners want to be able to apply skills in the real world to help their lives. Mr. Steele’s formal accounting education, practical work experience, and substantial teaching experience allow him to create a curriculum that combines traditional accounting education with practical knowledge and application. He accomplishes the goals of making accounting useful and applicable by combining theory with real-world software like Excel and QuickBooks.
Many courses teach QuickBooks data entry or Excel functions but are not providing the real value learners want. Real value is a result of learning technical skills like applications, in conjunction with specific goals, like accounting goals, including being able to interpret the performance of a business.
Mr. Steele makes knowledge understandable by breaking down complex concepts into smaller units with specific objectives and using step by step learning processes to understand each unit. Many accounting textbooks cram way too much information into a course, making it impossible to understand any unit fully. By breaking the content down into digestible chunks, we can move forward much faster.
Mr. Steele also makes use of color association in both presentations and Excel worksheets, a learning tool often overlooked in the accounting field, but one that can vastly improve the speed and comprehension of learning accounting concepts.
The material is also made understandable through the application of concepts learned. Courses will typically demonstrate the accounting concepts and then provide an Excel worksheet or practice problems to work through the concepts covered. The practice problems will be accompanied by an instructional video to work through the problem in step by step format. Excel worksheets will be preformatted, usually including an answer tab that shows the completed problem, and a practice tab where learners can complete the problem along with a step by step presentation video.
Mr. Steele makes learning accounting accessible by making use of technology and partnering with teaching platforms that have a vision of spreading knowledge like Udemy.