Miters Company purchases $15,000 of raw materials on account, and it occurs $23,900 of factory labor costs.
Journalize the two transactions on March 31, assuming the labor costs are not paid until April.
Recording journal entries in the general journal are the first step of the accounting cycle. All accounting transactions are recorded in the journal with debit and credit to the respective ledger accounts.
Answer and Explanation:
The journal entries to record transactions as on Mar 31:
|Date||Account titles & explanations||Amount($)||Amount($)|
|Mar 31||Raw material inventory||$15,000.00|
|(to record purchase of materials on account)|
|Mar 31||Factory labor expenses||$23,900.00|
|Accrued expenses payable||$23,900.00|
|(to record labor expenses incurred but yet to be paid)|
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from Accounting 101: Financial AccountingChapter 3 / Lesson 10