Which of the following best describes the information for each transaction recorded in a journal?

• A. Only the total amount of the transaction.
• B. The names of the customers involved.
• C. The balance of each account after the transaction.
• D. The accounts affected, amounts debited and credited, and a brief explanation.

Answer: (D)

Verified step by step guidance

1. Understand the purpose of a journal in accounting: A journal is a chronological record of all transactions, providing detailed information about each transaction.
2. Identify the key components recorded in a journal entry: These include the accounts affected, the amounts debited and credited, and a brief explanation of the transaction.
3. Clarify why other options are incorrect: For example, recording only the total amount of the transaction or the names of customers involved does not provide sufficient detail for proper accounting. Similarly, the balance of each account after the transaction is not typically recorded in the journal but in the ledger.
4. Recognize the importance of debits and credits: Journals use the double-entry accounting system, where every transaction affects at least two accounts, with one account debited and another credited.
5. Conclude that the correct description of journal information is: The accounts affected, amounts debited and credited, and a brief explanation of the transaction.