2.  A good accounting system must be able to handle transactions in order, even if they are happening at a rapid pace. The chronological journal is a centuries-old device that keeps track of business transactions

3.  Is a book in which the accounting entries for all transactions are first recorded, before they are recorded in the ledger accounts. Transactions are recorded in the order of their occurrence.

4.  The simplest form is the two-column general journal (see Figure 6.1)  A journal entry is made up of all of the accounting changes for one transaction, in the form in which they are written in the general journal  The debited account and amount are recorded first. The credited account and amount are recorded second and are indented. Debits = Credits  Each journal entry ends with a brief explanation

5.  1. The year: Enter the year in small figures on the first line of each page. Not repeated for each entry. Enter a new year at the point on the page where it occurs  2. The month: Same rules as year  3. The day: Enter the day on the first line of each journal entry. Day is always written.

6.  1. The date  2. Debit account(s)  3. Credit account(s)  4. Explanation

7.  Chief purpose is to provide a continuous record of the accounting entries  Accounting entries come from source documents  The entry clerk should see that each entry balances and generally that everything is in order  If entered properly it reduces errors and prevents problems from occurring later  Useful for reference of transactions

8.  Every accounting entry is recorded first in the journal  The financial position provided by a balance sheet would be your opening entry  The journal entry that starts the books off, or “opens” them, is known as the opening entry