An accounting journal contains a listing of transactions for a business. The transactions are entered into the journal when they occur and are maintained in chronological order. Journal entries are recorded by the business' bookkeeper, accountant or controller to maintain the accounting journals. While journal entries are specific to a transaction, all journal entries include the date, at least two accounts and the amount of the transaction. Journal entries are then posted to the accounting journal, or general journal, so business records are up to date.
Prepare the journal entry related to services rendered. Record the date the services were rendered according to the invoice.
Record the debit side of the journal entry. The debit is dependent on how payment for services rendered was received. If cash was paid for services, the cash account will be debited. If services were provided on account, the accounts receivable account will be debited. If payment was a combination of cash and on account, there will be two debits for the journal entry. Use the invoice to record the correct amounts to the appropriate accounts.
Enter the credit side of the journal entry. The credit will represent the income portion of the journal entry. Therefore, there will be a credit to the services rendered account. Other names used for the services rendered account include income, sales and fees. Record the amount of income earned according to the invoice.
Record a brief memo for the transaction. In the case of services rendered, the memo may state: “To record invoice for services rendered.”
Verify that the debits and credits for the journal entry are equal in amount, or balanced. If the journal entry is not balanced, review each debit and credit made to find the error.
Record the journal entry in the accounting journal. When journal entries are made in a computer software application specific to accounting, the software program will often perform this step automatically.