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during march, zea incorporated transferred $62,000 from work in process to finished goods and recorded a cost of goods sold of $68,000. the journal entries to record these transactions would include a:

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The journal entries to record the transactions would include a credit to work in process of $62,000.

What does a journal entry include?

Journal entries describe how transactions influence accounts and balances and serve as a simple record of all transactions that a business makes. The information in journal entries, which come in a variety of formats to suit corporate requirements, serves as the foundation for all financial reporting.

Although journal entries may include many data points following are the primary ones :

  • a header with the entry type described and the date entered in the journal
  • sum of money(s), the account(s), and date(s) on which the transaction will debit those account (s)
  • a special reference or identification number;
  • one or more accounts, the sum(s) that will be credited, and the date or dates on which these credits will be effected;
  • a concise explanation of the transaction

Journal entries may also contain other pertinent information for the company, such as the subsidiary or subsidiaries participating in the transaction and the currency or currencies used.

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