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

M&R Company

General Journal for adjusting entries:

a) Debit Accounts Receivable $2,000

Credit Service Revenue $2,000

To record services to customers on account.

b) Debit Salaries & Wages Expense $1,000

Credit Salaries & Wages Payable $1,000

To record wages incurred but not yet paid.

c) Debit Interest on Bank Loan Expense $400

Credit Interest on Bank Loan Payable $400

To record accrued interest.

d) Debit Lawn Services Expense $500

Credit Accounts Payable $500

To record an accrued expense for lawn services.

e) Debit Interest Revenue Receivable $200

Credit Interest Revenue $200

To record accrued interest revenue from investments.

f) Debit Salaries & Wages Expense $900

Credit Salaries & Wages Payable $900

To record accrued supervisors' salary expenses.

Explanation:

Adjusting journal entries are prepared to record expenses and income that accrued or were prepaid, including depreciation charge, during the period for which cash transactions had not taken place.  They are made to ensure compliance with the accrual concept and the matching principle of generally accepted accounting principles.

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