a. M&R Company provided $2,000 in services to customers that are expected to pay

Question

a. M&R Company provided $2,000 in services to customers that are expected to pay the company sometime in January following the company's year-end b. Wage expenses of $1,000 have been incurred but are not paid as of December 31. c, M&R Company has a $5,000 bank loan and has incurred (but not recorded) 8% interest expense of $400 for the year ended December 31. The company will pay the $400 interest in cash on January 2 following the company's year-end d. M&R Company hired a firm to provide lawn services during December for $500. M&R will pay for December lawn services on January 15 following the company's year-end e. M&R Company has earned $200 in interest revenue from investments for the year ended December 31. The interest revenue will be received on January 15 following the company's year-end f. Salary expenses of $900 have been earned by supervisors but not paid as of December 31. Prepare year-end adjusting journal entries for M&R Company as of December 31 for each of the above separate cases. View transaction list Journal entry worksheet 2 M&R Company provided $2,000 in services to customers that are expected to pay the company sometime in January following the company's year-end Note: Enter debits before credits. Transaction General Journal Debit Credit Accounts receivable 2,000 Cash 2,000

Explanation / Answer

a.

Accounts Receivable A/c     Dr 2,000

To revenue a/c2,000

(Being services provided to customer)

b.

Wages Expenses A/c    Dr 1,000

To Wages outstanding A/c1,000

(Being wages incurred but not paid recorded)

c.

Interest Expense A/c . Dr 400

To Interest Payable/Outstanding a/c 400

(Being interest expense incurred but not paid recorded)

d.

Lawn Service Expenses A/c       Dr 500

To Lawn Services outstanding/Payable a/c 500

(Being liability for expense recorded)

e.

Interest Receivable A/c    Dr 200

To Interest on Investment A/c200

(Being interest earned but not received recorded)

f.

Salary A/c    Dr 900

To salary outstanding/payable a/c900

(Being salary expense incurred but not paid recorded)

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