Corpartion

Balance sheet

December 31,2021

During 2022, the following transactions occurred. Sheridan uses a perpetual inventory system. 1. Sheridan paid $2,650 interest on the bonds on January 1,2022. 2. Sheridan purchased $243.500 of inventory on account. 3. Sheridan sold for $448,600 cash inventory which cost $248,900. Sheridan also collected $26,916 sales taxes. 4. Sheridan paid $230,300 on accounts payable. 5. Sheridan paid $2,650 interest on the bonds on July 1,2022. 6. The prepaid insurance ($5,800) expired on July 31. 7. On August 1, Sheridan paid $13,200 for insurance coverage from August 1, 2022, through July 31, 2023. 8. Sheridan paid $22,500 sales taxes to the state. 9. Paid other operating expenses, $89,300. 10. Redeemed the bonds on December 31,2022 , by paying $50,880 plus $2,650 interest. 11. Issued $85,800 of 8% bonds on December 31, 2022, at 103. The bonds pay interest every June 30 and December 31 . Adjustment data: 1. Recorded the insurance expired from item 7. 2. The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basis over 5 years with a $2,800 salvage value. 3. The income tax rate is 30\%. (Hint: Prepare the income statement up to incame before taxes and multiply by 30% to comput the amount)