Explanation:

Journalizing is the process of recording a business transaction in the accounting records. This activity only applies to the double-entry bookkeeping system. The steps involved in journalizing are as follows:

• Examine each business transaction to determine the nature of the transaction. For example, the receipt of a supplier invoice means that an obligation has been incurred. Or, throwing out obsolete inventory means that the inventory asset will be reduced.
• Determine which accounts will be affected. This calls for the identification of the general ledger accounts that will be altered as a result of the transaction. For example, recording a supplier invoice could mean that the office supplies expense account will be increased, as well as the offsetting accounts payable account.
• Prepare a journal entry. This involves not just entering the transaction in the accounting system, but also documenting it sufficiently so that someone reviewing the entry later will understand why it was created. Ideally, the entry should note the impacted accounts, the debits and credits entered, a journal entry number, and a narrative comment.