Adjusting entries: classification and mechanics

Section role: supports the 'Mapping the Adjustments' section while the teacher formalizes the findings from the Smart Gadgets Inc. audit teams. Slides: (1) Title — 'Mapping the Adjustments: From Cash to Reality'; (2) The Two Families — definitions of Deferrals and Accruals; (3) Smart Gadgets Deferral 1 — Prepaid Rent before and after the adjusting entry; (4) Smart Gadgets Deferral 2 — Supplies expense recognized from physical count; (5) Smart Gadgets Accrual 1 — Unrecorded employee wages; (6) Smart Gadgets Accrual 2 — Customer repair revenue earned; (7) The Golden Rule — why Cash is NEVER touched by an adjusting entry; (8) Accounting Principles — explicit links to the Matching Principle and Revenue Recognition Principle. Closing slide: 'Which type of adjustment feels most counterintuitive to you, and why?' — hands control back to the teacher for the upcoming individual assessment.

Lara from Teachy