Journalizing: Analyze and Journalize  By: Dr. John E. Ware, I Hey Kids, Writing a journal entry is the process of recording a business transaction into a journal. A journal entry is a record of all the financial transactions made by a business, including purchases, sales, receipts, payments, etc. The process of journalizing is usually the first step in the accounting cycle and involves the identification and recording of transactions, according to their appropriate account.  When journalizing, a company must make sure that all entries are accurate and are recorded properly in the journal. It is important to clearly distinguish between debits and credits when journalizing each transaction. The purpose of journalizing is to maintain an accurate record of all business transactions and to provide a summary of the financial activities of the business.  To begin the journalizing process, it is important to be familiar with the double-entry accounting system, which uses both debit and credit