journal entry

(noun)

A journal entry, in accounting, is a logging of transactions into accounting journal items. The journal entry can consist of several items, each of which is either a debit or a credit. The total of the debits must equal the total of the credits or the journal entry is said to be "unbalanced. " Journal entries can record unique items or recurring items, such as depreciation or bond amortization.

Related Terms

Examples of journal entry in the following topics:

  • Posting

    • In accounting, each journal entry is like a set of instructions.
    • Journal entries may also be posted as the journal page is filled if using a manual accounting system as a matter of personal taste.
    • When posting the general journal, the date used in the ledger accounts is the date the transaction was recorded in the journal, not the date the journal entry was posted to the ledger accounts.
    • In cross-indexing a notation is made for each entry that indicates which general or special journal account the general ledger entry came from.
    • The general ledger contains all entries from both the General Journal and the Special Journals.

  • Inputs to Accounting

    • Inputs into accounting include journal entries, the bookkeeping process, and the general ledger.
    • In accounting, a journal entry is a logging of transactions into accounting journal items.
    • The journal entry can consist of several items, each of which is either a debit or a credit.
    • Some data commonly included in journal entries are: journal entry number; batch number; type (recurring vs. nonrecurring); amount of money, name, auto-reversing; date; accounting period; and description.
    • Journal entries are used to record injections and ejections to such net worth.

  • Issuing Bonds

    • On issuance, the journal entry to record the bond is a debit to cash and a credit to bonds payable.
    • On issuance, the journal entry to record the bond is a debit to cash and a credit to bonds payable.
    • Other journal entries associated with bonds is the accounting for interest each period that interest is payable.
    • The journal entry to record that is a debit interest expense and a credit to cash.

  • Journalizing

    • Items are entered into the general journal or the special journals via journal entries, also called journalizing.
    • How would we record journal entries for each transaction?
    • Items are entered the general journal or the special journals via journal entries, or journalizing.
    • Each journal entry must have a debit and a credit.
    • How would we record journal entries for each transaction?

  • Accounting for Sale of Stock

    • If the common stock is sold above par value the journal entry is slightly different.

  • Bonds Issued at Par Value

    • The journal entry would be: Cash $1,000 Bond Payable $1,000The interest payable for each period will be equal to 1,000 x 7%, or $70.
    • The affected accounts will be interest expense and cash, and the journal entry will be as follows: Interest Expense $70 Cash $70At bond expiration, the creditor must make a journal entry for the last interest payment and the retirement of the bond through principal payment.
    • The journal entry would be: Bond Payable $1,000 Cash $1,000
    • Each of these transactions must be recorded in the company's financial records with a series of journal entries.
    • The general ledger contains all entries from both the General Journal and the Special Journals.

  • Accounting for Sale of Debt

    • So, in the example above, if the company sold the debt for $1200, it would need to make the following journal entry.
    • If the company sold the debt for $800, it would need to make the following journal entry:
    • If immediately after the accounting period, the company sold the debt for $800, it would need to make the following journal entry:
    • In the case of an available-for-sale asset, the following journal entry should be made in the following accounts:
    • The result of the journal entry is that the unrealized loss is realized, so the company's profit for the period is decreased by $200.

  • Reversing Entries

    • One such entry, at the end of July, is as follows: Expiration of insurance Insurance expense 200 Prepaid insurance 200 At the beginning of August, if Highland Yoga chooses to adopt reversing entries, such an entry would be as follows: Reversing of insurance 200 Prepaid insurance 200
    • Reversing entries are journal entries made at the beginning of each accounting period.
    • Reversing entries are most often used with accrual-type adjusting entries.
    • This adjusting entry records months A's portion of the interest expense with a journal entry that debits interest expense and credits interest payable.
    • The entry credits interest expense and debits interest payable.

  • Adjustments

    • Adjusting entries are journal entries made at the end of an accounting period that allocate income and expenses to their proper period.
    • Pay utilities from JulyCash -200, Utility Payable -200; Assets(-), Liabilities(-) The journal entries to record these transactions would be as follows:Julya.
    • For accounting purposes, adjusting entries are journal entries made at the end of an accounting period.
    • The journal entries to record these transactions would be as follows:
    • The General Ledger contains all entries from both the General Journal and the Special Journals.

  • Bonds Payable and Interest Expense

    • Journal entries are required to record initial value and subsequent interest expense as the issuer pays coupon payments to the bondholder.
    • The entries for the 10 years are as follows:
    • On 2010 December 31, the date of issuance, the entry is:
    • On 2020 December 31, the maturity date, the entry would be:
    • That entry would be: