Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] M&R Company provided $3,300 in services to customers in December, which are not yet recorded. Those customers are expected to pay the company in January following the company’s year-end. Wage expenses of $2,300 have been incurred but are not paid as of December 31. M&R Company has a $6,300 bank loan and has incurred (but not recorded) 7% interest expense of $441 for the year ended December 31. The company will pay the $441 interest in cash on January 2 following the company’s year-end. M&R Company hired a firm that provided lawn services during December for $630. M&R will pay for December lawn services on January 15 following the company’s year-end. M&R Company has earned $330 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. Salary expenses of $1,030 have been earned by supervisors but not paid as of December 31. Exercise 3-11 (Algo) Preparing adjusting entries—accrued revenues and expenses LO P3, P4 Prepare year-end adjusting journal entries for M&R Company as of December 31 for each of the above separate cases.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the following information for the Exercises below. (Algo)

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[The following information applies to the questions displayed below.]

M&R Company provided $3,300 in services to customers in December, which are not yet recorded. Those customers are expected to pay the company in January following the company’s year-end.
Wage expenses of $2,300 have been incurred but are not paid as of December 31.
M&R Company has a $6,300 bank loan and has incurred (but not recorded) 7% interest expense of $441 for the year ended December 31. The company will pay the $441 interest in cash on January 2 following the company’s year-end.
M&R Company hired a firm that provided lawn services during December for $630. M&R will pay for December lawn services on January 15 following the company’s year-end.
M&R Company has earned $330 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.
Salary expenses of $1,030 have been earned by supervisors but not paid as of December 31.

Exercise 3-11 (Algo) Preparing adjusting entries—accrued revenues and expenses LO P3, P4

Prepare year-end adjusting journal entries for M&R Company as of December 31 for each of the above separate cases.

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