Which of the following selections includes all of the required information that must be entered in a journal entry?

• A. Accounts affected and amounts credited only
• B. Date and a brief explanation only
• C. Date, accounts affected, amounts debited and credited, and a brief explanation
• D. Only the accounts affected and the amounts debited

Answer: (C)

Verified step by step guidance

1. Understand the purpose of a journal entry: A journal entry is used to record financial transactions in the accounting system. It must include all necessary details to ensure accuracy and compliance with accounting principles.
2. Identify the required components of a journal entry: A complete journal entry must include the date of the transaction, the accounts affected, the amounts debited and credited, and a brief explanation of the transaction.
3. Clarify the role of debits and credits: Debits and credits are used to record changes in accounts. Debits typically increase asset or expense accounts, while credits typically increase liability, equity, or revenue accounts. Both must balance to maintain the accounting equation.
4. Ensure the inclusion of a brief explanation: The explanation provides context for the transaction, helping users of financial statements understand the nature of the entry.
5. Review the options provided in the problem: Compare each option to the required components of a journal entry. The correct answer is the one that includes all necessary elements: date, accounts affected, amounts debited and credited, and a brief explanation.