Final answer:
Journal entries are summarized in T-account accounts, which display debits and credits for each account in a simple two-column format resembling a 'T'.
Step-by-step explanation:
Journal entries are summarized in T-account accounts to keep track of financial effects on each account. A T-account is essentially a simplified version of a balance sheet with a two-column format that visually resembles a 'T'. The left side of the T-account represents debits, while the right side represents credits. Each T-account corresponds to a particular account in the company's ledger and is used to summarize the transactions that affect that account. Over time, these T-accounts help in preparing financial statements and provide a clear picture of a company's financial standing.