General Journal: Definition, Example, Format, and Explanation
You must use an adjusting entry to account for the addition of assets and the elimination of prepaid expenses. On January 1, 2024, you transferred $10,000 from your personal bank account to your business bank account. This would be recorded as a debit to assets and a credit to equity. We discussed the use of journals in recording the Company's transactions and its use in general journal accounting. Journalizing Transactions It is not represented through Purchases, but with the name of...