liability, or owner’s equity. Next we would journalize the transaction data into a journal. This process contributes to the recording process of the accounting cycle because it discloses the effects of a transaction, provides a chronological order, and helps prevent or locate errors of a transaction. When we journalize we would separate each transaction by date, amount, and description. Journalizing means we would post the information to a general ledger. The ledger is helpful because it takes all the…
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