Final answer:
Transactions are recorded as journal entries in a journal, which is the first step in the accounting process. They can also be represented visually by T-accounts, which help users understand debits and credits for each account.
Step-by-step explanation:
Transactions are entered in the journal, which is the primary book used for recording transactions before they are posted to individual accounts in the general ledger. Each transaction gets recorded as a journal entry that shows which accounts are affected and by how much. For a visual representation, journal entries can also be depicted using a T-account, a simplified version of the ledger account, which facilitates understanding the effect of transactions on each account. A T-account has a two-column format that resembles the letter 'T': the left side of a T-account represents debits and the right side credits, helping to maintain the balance sheet's equation of "Assets = Liabilities + Owner's Equity".