bromso Adjust
Record adjusting entries for "$ARGUMENTS". Ensure revenue and expenses are recognized in the correct period by recording accruals, deferrals, depreciation, and estimates.
Prerequisites
Read .metapowers/accounting/$ARGUMENTS/04-trial-balance.md for the unadjusted trial balance.
Process
Identify required adjustments:
- Accrued revenues — revenue earned but not yet billed or received
- Accrued expenses — expenses incurred but not yet paid (wages, interest, taxes)
- Prepaid expenses — payments made in advance that need to be expensed over time
- Unearned revenue — cash received in advance that needs to be recognized as earned
- Depreciation — allocate the cost of long-lived assets over their useful lives
- Allowances & estimates — bad debt allowance, warranty reserves, inventory write-downs
Create adjusting journal entries:
- For each adjustment, record:
- Type — accrual, deferral, depreciation, or estimate
- Accounts — debit and credit accounts
- Amount — calculated adjustment amount with supporting calculation
- Rationale — why this adjustment is necessary
- Number entries sequentially (AJE-001, AJE-002, etc.)
- For each adjustment, record:
Validate adjustments:
- Each adjusting entry must have equal debits and credits
- Verify that no operating transactions are included (those belong in Phase 2)
- Confirm depreciation methods and useful lives are consistent with policy
Write the artifact to
.metapowers/accounting/$ARGUMENTS/05-adjust.mdwith sections:- Adjusting Journal Entries — all entries with type, accounts, amounts, and rationale
- Adjustment Summary — total adjustments by type
- Impact Analysis — how adjustments affect net income and key account balances
Output
The adjustments written to .metapowers/accounting/$ARGUMENTS/05-adjust.md. Present a summary highlighting:
- Number of adjusting entries by type
- Net impact on net income
- Largest adjustments by dollar amount