Journal Entry

[JUR-nl EN-tree]

What is the definition of Journal Entry?

A record in the general journal that documents a single financial transaction, detailing the accounts affected and the amounts involved.

Using Journal Entry in an Example

For instance, if a company purchases equipment for $5,000 cash, the journal entry would involve debiting the equipment account by $5,000 and crediting the cash account by $5,000 to reflect the transaction in the accounting records.

Using Journal Entry in a sentence

During the audit, the accountant pointed out an error in one of the journal entries that had incorrectly recorded a payment.

Related Terms

Jeopardy

In the context of tax collection, jeopardy refers to a situation where the IRS believes that the collection of tax is at risk of being uncollected, prompting immediate assessment and collection of such tax without the intermediate procedural steps.

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Job Order

A customer request for a specific quantity of products that are designed and manufactured to unique specifications.

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Joint Return

A tax return filed by married taxpayers or surviving spouses, combining their incomes, exemptions, deductions, and credits on a single form.

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Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. Each of the participants is responsible for profits, losses, and costs associated with the venture.

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Journal

A book or digital record in which all daily financial transactions are initially recorded in chronological order.

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Junk Bonds

Debt securities issued by companies with higher than normal credit risk, classified as 'non-investment grade' bonds. These securities typically offer a higher rate of interest to compensate for the increased risk.

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Just-In-Time

An inventory management philosophy in which resources, including materials, personnel, and facilities, are utilized only as needed, with the goal of minimizing waste and increasing efficiency.

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Journal Entry

Related Terms

Jeopardy

Job Order

Joint Return

Joint Venture

Journal

Junk Bonds

Just-In-Time

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