What is a journal entry in accounting?

(1) Journal entry: An entry into an accounting journal.
(2) Accounting journal: An accounting record that keeps accounting transactions as they occur.
(3) A journal entry converts an accounting transaction into the terms of debits and credits.
(4) All journal entries should satisfy the following requirements:
a. At least one entry is recorded on the debit side.
b. At least one entry is recorded on the credit side.
c. Sum of debit side amounts is equal to the sum of credit side amounts.

The following is an example of a journal entry:

  Debit Credit
Cash 320,000  
     Owner’s equity   320,000

Owner invested $320,000 in the business.



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