Accrued Revenues

Revenue earned but not yet billed or received — debit receivable, credit revenue.

Accrued Expenses

Expenses incurred but not yet paid — debit expense account, credit liability.

Unearned Revenue

Cash received in advance — when earned, reduce the liability and recognise revenue.

Prepaid Expenses

Paid in advance — when used, reduce the prepaid asset and recognise the expense.

Depreciation Adjusting Entry

Record the period's depreciation: Dr. Depreciation Expense / Cr. Accumulated Depreciation.

Supplies Used

Count remaining supplies; the difference from the beginning balance is the expense.

Close Revenue Accounts

Debit all revenue accounts and credit Income Summary for the total.

Close Expense Accounts

Debit Income Summary for the total and credit all expense accounts.

Close Income Summary

Transfer net income (or net loss) from Income Summary to Retained Earnings.

Close Dividends

Debit Retained Earnings and credit Dividends to record distributions to owners.

Post-Closing Trial Balance

After closing, only permanent accounts remain — verify debits equal credits.

Full Adjusting & Closing Sequence

End-to-end: apply all adjustments, compute adjusted net income, and close the books.