A summary of the basic types of adjusting entries is shown in Exhibit 8 on page 120. The process. adjusting entries for NetSolutions are shown in Exhibit 9 on page 121. The adjusting entries are dated as of the last day of the period. However, because collecting the adjustment data requires time, the entries are usually recorded at a later date. An explanation is normally included with each adjusting entry.
NetSolutions’ adjusting entries are posted to the ledger shown in Exhibit 10 on pages 122-123. The adjustments are shown in color in Exhibit 10 to distinguish them from other transactions.
Source: Warren Carl S., Reeve James M., Duchac Jonathan (2013), Corporate Financial Accounting, South-Western College Pub; 12th edition.