Adjusting entries are journal entries recorded to update general ledger accounts at the end of a fiscal period. Adjusting entries are recorded on the next journal page following the page on which the last daily transaction for the month are recorded.
Closing entries are journal entries used to prepare temporary accounts for a new fiscal period. The temporary account balances must be reduced to zero at the end of each fiscal period. This procedure prepares the temporary accounts for recording information for the next fiscal period.
Financial statements are financial reports that summarize the financial condition and operations of a business. These documents are primarily for business owners and managers. They use this information to make business decisions.
1.Balance Sheets are financial statements that report assets, liabilities, and owner's equity on a specific date.
2. Income Statements are financial statements showing the revenue and expenses for a fiscal period.
3.Statements of Stockholder's Equity is a financial statement that is often presented in lieu of a statement of retained earnings and other disclosures about equity accounts.
1.Balance Sheets are financial statements that report assets, liabilities, and owner's equity on a specific date.
2. Income Statements are financial statements showing the revenue and expenses for a fiscal period.
3.Statements of Stockholder's Equity is a financial statement that is often presented in lieu of a statement of retained earnings and other disclosures about equity accounts.