Final answer:
To record the $451,000 payment to inventory suppliers, debit accounts payable and credit cash or bank account. Additionally, the firm's accounting profit is $50,000, derived from sales revenue of $1 million minus explicit costs of $950,000.
Step-by-step explanation:
The student's question is about recording a payment to inventory suppliers on accounts payable, which is a financial transaction typically found in accounting practices. To record the payment of $451,000 to inventory suppliers, you would debit the accounts payable for $451,000, indicating the reduction of liability, and credit the cash or bank account for the same amount to reflect the outflow of cash or bank balance. This entry ensures that the payment made to suppliers is accurately reflected in the company's financial records, aligning with the principles of double-entry bookkeeping.
For the self-check question provided, the firm's accounting profit is calculated by subtracting the explicit costs of labor, capital, and materials from total revenues. As described in the reference, the accounting profit is:
Accounting profit = $1,000,000 (sales revenue) - ($600,000 (labor) + $150,000 (capital) + $200,000 (materials)) = $50,000.
This calculation is a fundamental concept in accounting that contributes to assessing a firm's financial performance.