Final answer:
To calculate the accounting profit, subtract the total expenses from the sales revenue. For the firm in question, labor, capital, and materials expenses total $950,000. Deducting this from the sales revenue of $1,000,000 gives an accounting profit of $50,000.
Step-by-step explanation:
The student has asked to journalize labor-related transactions for a glass plant where labor has been incurred but not yet paid. Given the scenario, journalizing means recording these labor expenses into the company's financial system, typically in the form of a journal entry.
To calculate the firm's accounting profit, we should subtract the total expenses from the sales revenue. The expenses include labor, capital, and materials costs. Using the self-check question's figures, the firm's profit can be calculated as follows:
- Sales Revenue: $1,000,000
- Total Expenses: Labor ($600,000) + Capital ($150,000) + Materials ($200,000) = $950,000
- Accounting Profit: Sales Revenue - Total Expenses = $1,000,000 - $950,000 = $50,000
So, the firm's accounting profit last year was $50,000.