(Algo) Prepare Journal Entries [LO3-1]

Larned Corporation recorded the following transactions for the just completed month.

1. $88,000 in raw materials were purchased on account.
2. $86,000 in raw materials were used in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $128,500 were paid in cash. Of this amount, $102,300 was for direct labor and the remainder was for indirect labor.
4. Depreciation of $195,000 was incurred on factory equipment.

Required:

Record the above transactions in journal entries.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Journal entry worksheet

$88,000 in raw materials were purchased on account.

$86,000 in raw materials were used in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials.

Total labor wages of $128,500 were paid in cash. Of this amount, $102,300 was for direct labor and the remainder was for indirect labor.

Depreciation of $195,000 was incurred on factory equipment.

View Transaction list

• $88,000 in raw materials were purchased on account.
• $86,000 in raw materials were used in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials.
• Total labor wages of $128,500 were paid in cash. Of this amount, $102,300 was for direct labor and the remainder was for indirect labor.
• Depreciation of $195,000 was incurred on factory equipment.

Note := journal entry has been entered

Note: Enter debits before credits.

Transaction General Journal Debit Credit

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2.

3.

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THESE ARE THE LIST FOR THE JOURNAL ENTRY

• No journal entry required
• Accounts payable
• Accounts receivable
• Accumulated depreciation
• Cash
• Cost of goods sold
• Depreciation expense
• Finished goods
• Manufacturing overhead
• Raw materials
• Sales
• Selling and administrative expenses
• Wages payable
• Work in process