Which of the Following Pair of Journal Entries Correctly Records

question 59

Short Answer

Which of the following pair of journal entries correctly records the current month's activity where the company had $42,060 in total factory labor costs that were paid in cash with $32,400 of this total for direct labor?

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Definitions:

Ownership

The state or fact of exclusive rights and control over property, which can be an object, land/real estate, intellectual property, or some form of rights to assets.

Benefits

Forms of value, other than payment, provided to employees in return for their contribution to the organization, such as healthcare, pensions, and leave entitlements.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, ultimately presenting the net profit or loss.

Revenue Recognition

The accounting principle that deals with the specific conditions under which revenue is recognized and determines how to account for it.