Question

a. M&R Company provided $2,000 in services to customers in December. Those customers 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 that provided 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.

Answer 1

No	Transaction	General Journal	Debit	Credit
1	a	Accounts receivable	2000
		Revenue		2000
2	b	Wages expense	1000
		Wages payable		1000
3	c	Interest expense	400
		Interest payable		400
4	d	Lawn service expense	500
		Lawn service payable		500
5	e	Interest receivable	200
		Interest revenue		200
6	f	Salary expense	900
		Salary payable		900