Already incurred but not yet paid

​

Adjustment:

+ to expense

Insert expense payable (classified under current liabilities)

​Expense payable

​Prepaid expense

Expense

Not yet incurred but already paid

​

Adjustment:

- from expense

Insert prepaid expense (classified under current assets)​

Already earned but not yet received

​

Adjustment:

+ to income

Insert income receivables (classified under current assets)

​Income receivables

​Income received in advance

Income

Not yet earned but already received

​

Adjustment:

- from income​

Insert income received in advance (classified under current liabilities)​