Exercise 3-1 (Algo) Prepare Journal Entries [LO3-1]

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

1. Purchased $88,000 of raw materials on account.
2. $86,000 in raw materials were used in production. Of this amount, $73,000 was direct materials and the remainder was indirect materials.
3. Paid employees $125,500 cash. Of this amount, $102,500 was direct labor and the remainder was indirect labor.
4. Depreciation of $191,000 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.