00:01
In this example, we're going to practice posting adjusting entries for different transactions onto t accounts.
00:08
Services performed but unbilled and collected.
00:13
This would affect the two accounts of service revenue first because we performed the service, but we did not collect the money.
00:24
That account is accounts receivable.
00:27
Accounts receivable increases with debits in t.
00:30
Accounts and service revenue with a credit.
00:34
Remember, debits always equal your credits.
00:39
Depreciation on equipment, 190.
00:43
This affects depreciation expense, but also accumulated depreciation, which is the total amount of depreciation that's ever recorded to the asset.
00:57
Depreciation expense increases with a debit and a cumulative depreciation with a credit.
01:04
Again, debits equalling credits in t -charts.
01:08
One -12th of the insurance expired.
01:11
You didn't let me know what the total insurance was.
01:15
Let's say it was 12 ,000.
01:17
1 ,000 would have expired.
01:20
The accounts affected our prepaid insurance and insurance expense...