The journal entry serves as the source for postings to the:

The journal entry serves as the source for postings to the:

• A. Ledger
• B. Trial balance
• C. Bank statement
• D. Annual report

Answer: (A)

In double-entry accounting, transactions are first recorded in the general journal with debits and credits, and those journal entries are then posted to the individual accounts in the general ledger. The ledger compiles all postings by account, giving running balances for each account, so the journal entries provide the source data for those postings. From the ledger, you generate the trial balance and financial statements; bank statements come from external bank records, and the annual report summarizes the financial statements rather than serving as the posting source.

In double-entry accounting, transactions are first recorded in the general journal with debits and credits, and those journal entries are then posted to the individual accounts in the general ledger. The ledger compiles all postings by account, giving running balances for each account, so the journal entries provide the source data for those postings. From the ledger, you generate the trial balance and financial statements; bank statements come from external bank records, and the annual report summarizes the financial statements rather than serving as the posting source.