contestada

Prepare year-end adjusting journal entries for M&R Company as of December 31, 2017, for each of the following separate cases. (Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; Interest Receivable; Equipment; Wages Payable; Salary Payable; Interest Payable; Lawn Services Payable; Unearned Revenue; Revenue; Interest Revenue; Wages Expense; Salary Expense; Supplies Expense; Lawn Services Expense; Interest Expense.)

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 at a monthly fee of $500 with payment occurring on the 15th of the following month. Payment for December services will occur 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.

Respuesta :

Tundexi

Answer:

a. Date   Account Titles and Explanation      Debit    Credit

               Account receivables                         $2,000

                     Revenue                                                     $2,000

               (To record the service provided for payment

                not yet received)

b. Date   Account Titles and Explanation      Debit    Credit

               Wage expenses                                 $1,000

                     Wage payable                                            $1,000

                (To record the wage accrued but not yet paid)

c. Date   Account Titles and Explanation      Debit    Credit

               Interest expenses                              $400

                     Interest payable                                        $400

                (To record the interest earned but not received)

d. Date   Account Titles and Explanation      Debit    Credit

               Lawn serviced expenses                  $500

                      Lawn services payable                            $500

                (To record the lawn service incurred but not yet paid)

e. Date   Account Titles and Explanation      Debit    Credit

               Interest receivable                             $200

                     Interest revenue                                        $200

              (To record the interest revenue earned but not received)

f. Date   Account Titles and Explanation      Debit    Credit

             Salary Expenses                                  $900

                      Salary Payable                                         $900

              (To record the salary expenses accrued but not yet paid)

Otras preguntas