general journal

(noun)

where double entry bookkeeping entries are recorded by debiting one or more accounts and crediting another one or more accounts with the same total amount

Related Terms

Examples of general 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.
    • 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 account number appears in the Posting Reference column of the General Journal.
    • 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.
    • Depending on the business's accounting information system, specialized journals may be used in conjunction with the general journal for record-keeping.
    • In such case, use of the general journal may be limited to non-routine and adjusting entries
    • 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.

  • Bonds Issued at Par Value

    • The journal entry would be: Bond Payable $1,000 Cash $1,000
    • Next, it generally pays interest during the term of the bond.
    • When the bond is issued, the company must record a liability called "bond payable. " This is generally a long-term liability.
    • All transactions made by the company in relation to the bond must be recorded in its general ledger.
    • 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.
    • Journal entries are used to record injections and ejections to such net worth.
    • Each account in the general ledger consists of one or more pages.
    • The general ledger is where posting to the accounts occurs.

  • 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.

  • What Is the Accounting Cycle?

    • Generally, the accounting period consists of 12 months.
    • After determining, via the source documents, that an event is a business transaction, it is then entered into the company books via a journal entry.
    • After all the transactions for the period have been entered into the appropriate journals, the journals are posted to the general ledger .
    • After the financials are prepared, the month end adjusting and closing entries are recorded (journalized) and posted to the appropriate accounts.
    • The General Ledger contains all entries from both the General Journal and the Special Journals.

  • Accounting for Sale of Stock

    • Often times companies offer their stock for sale as a way to generate cash.
    • If the common stock is sold above par value the journal entry is slightly different.
    • Often times companies offer their stock for sale as a way to generate cash.

  • Accounting for Sale of Debt

    • Under FASB 115, a part of US GAAP (Generally Accepted Accounting Principles), a company must classify all of the debt securities it owns into one of three categories.
    • 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:

  • Bonds Issued at a Premium

    • This generally means that the bond's contract rate is greater than the market rate.
    • The resulting journal entry would be:
    • To calculate the amortization rate of the bond premium, a company generally divides the bond premium amount by the number of interest payments that will be made during the term of the bond.
    • The resulting journal entry is:
    • Using the example, this is what the final journal entries must look like:

  • Recognizing Notes Receivable

    • To record a journal entry for a sale on account, one must debit a receivable and credit a revenue account.
    • When the customer pays off their accounts, one debits cash and credits the receivable in the journal entry.
    • For example, a sale on account would be recorded similarly to the following interest receivable journal entry:
    • Business organizations which have become too large to perform such tasks by hand (or small ones that could but prefer not to) will generally use accounting software on a computer to perform this task.
    • Companies have two methods available to them for measuring the net value of accounts receivable, which is generally computed by subtracting the balance of an allowance account from the accounts receivable account.