What are the 7 steps in journalizing?

1. Analyze the transaction. This means figuring out what happened and what accounts are affected. For example, if you buy a new computer for your business, you would debit the Computers account and credit the Cash account.

2. Enter the date of the transaction. This goes in the Date column of your journal.

3. Enter a brief description of the transaction. This goes in the Description column of your journal. For example, you could write "Purchased computer for office use."

4. Enter the debit amount. This goes in the Debit column of your journal. In our example, the debit amount would be the cost of the computer.

5. Enter the credit amount. This goes in the Credit column of your journal. In our example, the credit amount would be the cash paid for the computer.

6. Balance the entry. This means making sure that the total debits equal the total credits. If they don't, you've made a mistake somewhere and you'll need to find it.

7. Post the entry to the ledger. This means copying the information from the journal into the appropriate ledger accounts.