Final answer:
To check for accuracy when recording adjusting journal entries, one should carefully reread the entries, use self-reflection questions, perform validity checks, write exploratory entries to analyze the logic, compare with previous periods, and have a supervisor review the work.
Step-by-step explanation:
When recording the adjusting journal entries, it is important to check for accuracy by following several steps to ensure that all financial records are correct.
- Reread the financial statements and the adjustments you have made, focusing on the areas related to the adjustments.
- Use self-reflection questions to assess whether the entries meet the necessary accounting requirements and whether they make sense in the context of the financial statements.
- Perform validity checks, such as verifying that the debits equal the credits, and ensure the adjustments are recorded in the correct accounting period.
- Create an exploratory journal entry or blog post to play with the ideas and determine if the logic behind the adjustments holds when seeing the bigger picture.
Moreover, another effective way to check accuracy is to compare the adjustments with previous periods or to check against well-established accounting standards. This comparative analysis can often reveal inconsistencies or errors. Additionally, it could be useful to have a supervisor review the adjustments to provide a second set of eyes, which can help in identifying any discrepancies.