Adjusting Entry

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Adjusting Entry

 

(Russian, storno, from Italian storno, bookkeeping transfer), a bookkeeping procedure generally intended to rectify an incorrect entry.

Only one kind of adjusting entry is customarily used—the reversing entry, a supplementary entry in which the same absolute number is kept but the sign is reversed, in order to correct an error. The incorrect entry is thus canceled. The numbers reversed are usually written in red ink so that they will stand out; thus, reversing entries are sometimes known as red-ink entries. A partial adjusting entry can also be used; here, the original error is not canceled but merely altered.

In making an adjusting entry, it is necessary that reference be made to the entries being corrected or adjusted.

References in periodicals archive ?
is used to help students get a basic understanding of adjusting entries by preparing journal entries randomly picked from a game board.
Notice that the adjusting entries for unrealized profit (Year 1) and realized profit (Year 2) in Panel A of Exhibit 4 are identical to the adjusting entries for unrealized and realized profit in Panel A of Exhibit 2, except for the amounts.
Adjusting entries are the final step in accrual accounting.
If proposed audit adjustments should be subjected to the same standards as nonattest services, then the third situation described above requires the auditor to consider whether independence is impaired and to address the issue every year when preparing material audit adjusting entries that are submitted to the client.
This is a result of increased sales and cost reductions and year end adjusting entries which have further reduced expenses.
Any Proposal For Adjusting Entries Will Be Submitted To The City Finance Officer In Writing With Sufficient Explanation To Determine The Need For The Adjustment And For Proper Posting To The Financial Records.
The introductory course should do one thing: teach the basic foundation of accounting, also known as bookkeeping, and then go a little past that to incorporate adjusting entries, and other topics.
In addition, students discuss in class how they will present the adjusting entries and the resulting financial statements to Hydromaint's owners/engineers and bookkeeper and are continually reminded of their responsibility to various users of financial information such as investors, creditors and suppliers.
The case study's staff accountant was too concerned with adjusting entries and not concerned enough about the apparent indication of fraud.
Bookkeeping and write-up - Using a scanner and Internet connection, clients' bookkeeping and accounting becomes easier and cost effective, as the Xpitax bookkeeper will record client data into the general ledger, make adjusting entries, and prepare and complete financial statements and tax returns.
Provide the City with adjusting entries and a final trial balance upon completion of the field work.
journal entries, adjusting entries, accounting theory, and tax law) and generally ignores ethics.