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Explore the year-end financial processes at Singh-a-Long Music Store, including general journal entries, trial balances, and internal controls essential for accurate financial reporting.
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A general journal is a record of all financial transactions of a business in a chronological order, while financial statements are formal records that summarize the financial position and performance of a business.
Businesses, organizations, and individuals who maintain financial records and need to report their financial position and performance are generally required to file general journals and financial statements.
To fill out a general journal, list the date of the transaction, description, accounts affected, debits and credits. For financial statements, gather financial data, compute totals, and present them in the appropriate format.
The purpose of a general journal is to provide a complete record of all transactions in one place, while the primary purpose of financial statements is to summarize the financial status and results of operations for stakeholders.
General journals must report transaction dates, descriptions, account names, debits, and credits. Financial statements must include income statements, balance sheets, and cash flow statements with relevant financial data.
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