Enter Month-End Adjustment Data
Use the responsive calculator grid below. Large screens show three columns, medium screens show two, and phones show one.
Example Data Table
| Input Item | Example Value | Purpose |
|---|---|---|
| Unadjusted net income | $25,000.00 | Starting profit before closing adjustments. |
| Accrued revenue | $4,200.00 | Income earned but not yet recorded or billed. |
| Earned unearned revenue | $1,800.00 | Deferred revenue recognized during the month. |
| Accrued expense | $3,100.00 | Expenses incurred but not yet posted. |
| Prepaid before / after | $2,400.00 / $900.00 | Difference becomes prepaid expense consumed. |
| Supplies available / ending | $1,600.00 / $350.00 | Difference becomes supplies used expense. |
| Depreciation expense | $950.00 | Periodic fixed-asset cost allocation. |
| Bad debt, inventory, other | $700.00 / $500.00 / $400.00 | Allowance, write-down, and reserve adjustments. |
Formula Used
Prepaid expense consumed = Prepaid balance before adjustment − Prepaid balance after adjustment
Supplies used = Supplies available − Supplies on hand at month end
Total revenue adjustments = Accrued revenue + Earned unearned revenue
Total expense adjustments = Accrued expense + Prepaid expense consumed + Supplies used + Depreciation + Bad debt adjustment + Inventory write-down + Other adjustment
Net income effect = Total revenue adjustments − Total expense adjustments
Adjusted net income = Unadjusted net income + Net income effect
How to Use This Calculator
- Enter the reporting month and the unadjusted net income.
- Fill in revenue-side adjustments such as accrued revenue and earned deferred revenue.
- Enter expense-side items including accrued expenses, depreciation, bad debts, and inventory write-downs.
- Provide before-and-after balances for prepaid expenses and supplies so the tool can derive used amounts.
- Set an optional materiality threshold for a quick significance check.
- Press Calculate Adjustments to show the result above the form.
- Review the summary, journal entries, and Plotly graph.
- Use the CSV and PDF buttons to export the completed report.
FAQs
1. What does this calculator measure?
It estimates the combined profit impact of common month-end accounting adjustments, then converts those inputs into balanced journal-entry style outputs and an adjusted net income figure.
2. Why are prepaid expenses entered twice?
You enter the balance before adjustment and the remaining balance after review. The difference represents the amount consumed and moved into expense for the period.
3. How are supplies used calculated?
The calculator subtracts ending supplies on hand from supplies available. That difference is treated as supplies expense for the month-end adjustment.
4. What is the materiality threshold for?
It compares the absolute net adjustment against a chosen cutoff. This helps you see whether the combined effect may require closer review before final reporting.
5. Are debits and credits always equal here?
Yes. Each generated adjustment is structured as a balanced journal entry, so total debits and total credits remain equal in the report output.
6. Does this replace professional accounting judgment?
No. It is a planning and review tool. Final entries should still follow your accounting policy, chart of accounts, and applicable standards.
7. What does a negative net income effect mean?
A negative result means expense-side adjustments exceeded revenue-side adjustments, lowering adjusted profit compared with the unadjusted starting figure.
8. Can I export the results?
Yes. After calculation, use the CSV button for spreadsheet-friendly data or the PDF button for a shareable report snapshot.