Why Is It Necessary to Journalize Transactions from the Bank

question 181

Essay

Why is it necessary to journalize transactions from the bank reconciliation? List two examples of items that need to be journalized.

---

Definitions:

Passive Activities

Economic activities in which an individual participates without materially managing or operating them, often associated with rental properties or businesses in which the individual does not actively engage.

Income

Money received, especially on a regular basis, for work or through investments.

Medical Expenses

Amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for treatments affecting any part or function of the body.

Itemized Deductions

Deductions from taxable income that are individually listed on a tax return, allowing taxpayers to reduce their taxable income by specific allowable expenses.