Question

Journalize the following labor-related transactions for Portland Glass Creations at its plant in Portland, Oregon. Assume that the labor has been incurred, but not yet paid.

Short answer

Date	Particulars	Debit ($)	Credit ($)
	Plant janitor’s wages	620
	Plant furnace operator’s wages	860
	Glass blower wages	74,000
	Wages payable		75,480

Step-by-step solution

Journal entry

Journal entry is used to record the business transaction in the accounting record of the business. It is the foundation of effective record keeping.

Wages payable

Wages payable refers to the liability incurred by an organization for wages earned by the company’s employees but not yet paid. It is recorded as the current liability of the company. It is recorded as by debiting the wages expense and crediting the wages payable in the books of accounts of the company.

indirect material used