Drag the period end across December and watch each adjustment grow.
Every falls into one of two families, decided by when cash moves. If cash moved first, it is a deferral: a becomes an expense as it is used up, or an becomes revenue as the work gets done. If cash moves later, it is an accrual: an has been incurred but not yet paid, or an has been earned but not yet received.
Three things hold for all six entries above. Each one touches at least one income statement account and one balance sheet account. The credit does not go to Equipment when depreciation is recorded — it goes to a . And no adjustment ever includes Cash: the cash side of the story already happened, or has not happened yet.
Expenses, Assets, Dividends.
DEBT sounds like debit. It is a hook, not an acronym: the B and T do not expand, so the three accounts always ride beside it.
Liabilities, Owner’s equity, Revenue.
C for credits, then every letter decodes. Coverage is complete.
Debits increase expenses, assets, and dividends. Credits increase liabilities, equity, and revenue. Anything that pushes equity up is a credit: revenue, common stock. Anything that pulls it down is a debit: expenses, dividends. Assets are the mirror image.