Respuesta :
The recording of the journal entries keeps track of all financial transactions in time order. These journal entries utilize a double-entry bookkeeping method to give each business transaction a dual impact.
What is meant by journal entry?
- All company transactions are documented in journal entries. Any financial activity that has an effect on the firm is a transaction, in the broadest sense.
- They encompass every transaction involving the exchange of money, including interest payments, depreciation, costs, and wages. They are not just restricted to the purchasing and selling of products and services.
- General journal entries are not processed automatically as invoices or cash receipts are handled; rather, they are entered manually into the general ledger. A depreciation expenditure entry is an illustration: Number of reference: 9902. Date: 12/31/20.
- Business transactions are initially entered in a journal in manual accounting or bookkeeping systems, thus the name journal entry.
Journal Entries
Date Description DR CR
Jan 15 Merchandising Inventory $16,100
Cash $16,100
( To record of inventory purchase)
April 1 Cash $722,000
11% Note payable $722,000
( To record of note payable issued )
June 14 Bank $23,000
Unearned Income $23,000
( To record of deposit received )
July 15 Unearned Income $4050
Service Revenue $2,850
(To record payment for the services rendered)
Dec 12 Electricity bill payable $25,860
Electricity bill expenses $25,860
( To record unsettled bill for the year )
Dec 31 Wages payable $16,000
Wages Expenses $16,000
( To record outstanding wages payable)
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