1. Learning Objective 5 Record transactions in the general journal.

2. The General Journal When a transaction occurs, they are recorded initially and chronologically in a book called the GENERAL JOURNAL. The General Journal (GJ) is the simplest and most flexible type of journal Each transaction is journalized (recorded) in the general journal.

3. Journalizing Write out the journal entry in good form: Date Account to Debit $amt Account to Credit $amt Explanation of entry Each journal entry contains: a) the date b) the account names c) the dollar amounts debited and credited d) an explanation e) the account numbers (after posted)

4. Other Details A space should be skipped between journal entries. A compound entry is an entry with more than one debit or credit. The journal entry is posted to the General Ledger that we have already learned about.

5. Now, we have TWO Books! The General Ledger (Book of Accounts) The General Journal (Book of Original Entry)

6. Summary Slide The General Journal is used to maintain a record of business transactions in order. It allows us to show which accounts were affected. We post to the General Ledger from the General Journal. Note: Sometimes we use T accounts to show the journal entry and posting to the ledger without formally recording in the books!