Larned Corporation recorded the following transactions for the just completed month. a. Purchased $87,000 of raw materials on account. b. $85,000 in raw materials were used in production. Of this amount, $75,000 was direct materials and the remainder was indirect materials. c. Paid employees $124,500 cash. Of this amount, $100,800 was direct labor and the remainder was indirect labor. d. Depreciation of $197,000 was incurred on factory equipment. Required: Record the above transactions in journal entries. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.
Larned Corporation recorded the following transactions for the just completed month. a. Purchased $87,000 of raw materials on account. b. $85,000 in raw materials were used in production. Of this amount, $75,000 was direct materials and the remainder was indirect materials. c. Paid employees $124,500 cash. Of this amount, $100,800 was direct labor and the remainder was indirect labor. d. Depreciation of $197,000 was incurred on factory equipment. Required: Record the above transactions in journal entries. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Larned Corporation recorded the following transactions for the just completed month.
a. Purchased $87,000 of raw materials on account.
b. $85,000 in raw materials were used in production. Of this amount, $75,000 was direct materials and the remainder was indirect
materials.
c. Paid employees $124,500 cash. Of this amount, $100,800 was direct labor and the remainder was indirect labor.
d. Depreciation of $197,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.
View transaction list
Journal entry worksheet
1
2
Transaction
3.
3
$87,000 in raw materials were purchased on account.
Note: Enter debits before credits.
4
General Journal
Debit
Credit
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