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.

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Definitions:

Book Value

The residual amount that represents a company's assets minus its liabilities.

Accumulated Depreciation

The aggregate depreciation recorded on a fixed asset since its commencement of use.

Supplies Expense

The cost incurred from consuming supplies that are used during the operation of a business, often classified as an expense on the income statement.

Supplies

Items used in the daily operations of a business, not directly tied to the product or service being sold.