Adjusting entries are usually entered in the work sheet before they are entered in the general journal.

Adjusting Entries

These are journal entries made in an accounting system to update account balances prior to preparing financial statements, ensuring that all revenues and expenses are recorded in the appropriate periods.

Work Sheet

An informal financial statement usually used internally to prepare financial statements and support accounting operations.

General Journal

The primary accounting record used to record all transactions in chronological order, including both debit and credit accounts.