Legal Definitions - journal entry

A journal entry, in a legal or official context, refers to a formal, written record of an event, decision, or transaction. It is typically made in a designated ledger, minute book, or official system to create an authoritative account that can be referenced later for purposes of accountability, proof, or compliance.

• Example 1: Court Proceedings

  During a complex civil lawsuit, a judge issues an order requiring both parties to submit specific documents by a certain date. The court clerk then creates a formal record of this order, detailing the judge's instructions, the date it was issued, and the parties involved. This written record, entered into the court's official log, constitutes a journal entry. It serves as the official documentation of the judge's directive, ensuring all parties and future legal proceedings have an undeniable record of the requirement.

• Example 2: Corporate Governance

  The board of directors for a publicly traded company holds a quarterly meeting where they vote to approve a new executive compensation package. The corporate secretary meticulously records the date of the meeting, the attendees, the discussions held, and the final vote count for the compensation package. These detailed notes, once formally approved by the board, become part of the company's official minutes, which function as a journal entry of the board's actions. This record is vital for demonstrating corporate compliance and transparency to shareholders and regulatory bodies.

• Example 3: Legislative Record

  A state legislature is debating a bill to fund new infrastructure projects. After a series of votes on various amendments and the final passage of the bill, the legislative clerk compiles a precise account of each vote, including which legislators voted for or against, and the final outcome of the bill. This comprehensive documentation is then formally entered into the official legislative journal. This entry is a crucial journal entry, providing an indisputable public record of the legislative process and the actions taken by elected officials.