Accounting Instruction

Reference #300: Adjusting Entries & Financial Statement Creation

By: Bob Steele CPA

Narrated by: Bob Steele CPA

This book covers the adjusting journal process of financial accounting and the creation of financial statements, the creation of financial statements being the end goal of financial accounting, the product that the financial accounting system is designed to produce. Financial statements are the primary tool decision-makers use when making financial decisions. Financial statements are the preferred format for financial data to be compiled.

After normal business transactions have been input into the accounting system throughout a period, an adjusting process is often needed before the data is then compiled into financial statements, the adjusting process helping to covert financial data to a more perfect accrual system. The adjusting journal entries are often one of the most difficult areas of the accounting process for learners to understand, and is one of the most important topics needed for fully grasping accrual accounting concepts. A solid understanding of the adjusting process, and the reasons for the adjusting process, provides learners the tools needed to explain the difference between a cash basis and an accrual basis of accounting and the reasons an accrual basis is the preferred format for compiling accounting data.

We will start our learning about the adjusting process with a review of topics covered in prior texts, including a description of the overall financial accounting process, and the rules for recording normal transactions. If you do not have an understanding of what financial accounting is, or how to record normal journal entries, it is recommended that you listen to our prior texts first, Accounting Instruction Reference #100 and Accounting Instruction Reference #200.

We will then describe what the adjusting process is and how to think about the adjusting process, how the adjusting process fits into the overall financial accounting process, and what makes the adjusting process different.

PLEASE NOTE: When you purchase this title, the accompanying reference material will be available in your My Library section along with the audio.

PLEASE NOTE: When you purchase this title, the accompanying reference material will be available in your Library section along with the audio.

©2017 Bob Steele CPA (P)2017 Bob Steele CPA

Very helpful

I like that the book focuses on a specific area of financial accounting rather than trying to cover the entire topic in one book.

The adjusting journal entries process has been one of the more difficult topics to understand for me. The book goes through each journal entry in a step by step way.

This book also has a supplemental PDF file that can be very useful to visualize the processes. I like listening to these audiobooks to supplement my learning and get a better understanding of accounting topics.

Great adjusting entry help

This books explains the adjusting entry process in a very detailed way. The book does a good job defining what adjusting entries are, and then explains how we can approach any adjusting entry in a systematic way.

The thought process for recording adjusting entries is very helpful and can save a lot of time and frustration when learning this accounting topic. The book goes over each of the main adjusting entries and records them using a step by step thought process.

The can seem repetitive as we apply the same thought process to each adjusting entry, but the repetition is what helps certify the concepts in a practical way.