journal

(noun)

a book or computer file in which monetary transactions are entered the first time they are processed

Related Terms

Examples of journal in the following topics:

  • Posting

    • Carrying out of these instructions is known as posting, a procedure that takes information recorded via journal entries (or journalizing) in the General or Special Journals and transfers it to the General Ledger.
    • 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.
    • The general ledger contains all entries from both the General Journal and the Special Journals.
    • Describe how posting affects the General Journal, Special Journal and General Ledger

  • 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?
    • Special journals are designed to facilitate the process of journalizing and posting transactions.
    • Items are entered the general journal or the special journals via journal entries, or journalizing.
    • Explain the correct procedure for making a journal entry in the General or Special Journal.

  • 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.

  • 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 Stock

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

  • 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.

  • 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 Issued at a Premium

    • The resulting journal entry would be: Cash $110,000 Bond Payable $100,000The $10,000 premium would be divided by 10 annual interest payments.
    • The resulting journal entry would be:
    • The resulting journal entry is:
    • When all the final journal entries are made, the bond premium and bond payable account must equal zero.
    • Using the example, this is what the final journal entries must look like:

  • Reporting Equity Investments

    • The following journal entries are made by ABC to record the investment in XYZ:
    • Journal entry to account for the pro-rata share of XYZ annual income:
    • Journal entry to account for the pro-rata share of XYZ dividends: