Required information

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

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

1. M&R Company provided $2,000 in services to customers in December, which are not yet recorded. Those customers are expected to pay the company in January following the companys year-end.
2. Wage expenses of $1,000 have been incurred but are not paid as of December 31.
3. 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 companys year-end.
4. 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 companys year-end.
5. 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 companys year-end.
6. Salary expenses of $900 have been earned by supervisors but not paid as of December 31.

Exercise 3-12 (Static) Analyzing adjusting entries using accounting equation LO P3, P4

For each of the above separate cases, analyze each adjusting entry by showing its effects on the accounting equationspecifically, identify the accounts and amounts (including (+) increase or () decrease) for each transaction or event.

Required information Use the following information for the Exercises below. (Static) [The following information applies to the questions displayed below.] a. M&R Company provided $2,000 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. 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. Exercise 3-12 (Static) Analyzing adjusting entries using accounting equation LO P3, P4 For each of the above separate cases, analyze each adjusting entry by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including (+) increase or (-) decrease) for each transaction or event. x Answer is not complete. Assets Liabilities a. Accounts receivable (+) increase 2,000 = b. 1,000+ (+) increase (+) increase C. Wages payable Interest payable Lawn services payable = 400 + 500 + Equity (+) increase ) decrease (-) decrease (-) decrease (+) increase (-) decrease 2,000 (1,000) (400) (500) 200 Wages expense Interest expense Lawn services expense Interest revenue Salary expense d. (+) increase e. Interest receivable + (+) increase (-) decrease 200 = 2,200 x = f. Salary payable (+) increase 900 + (900)