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Exercise 3-05 (Video) Sheridan Company has the following balances in selected accounts on December 31, 2020. Accounts Receivable $ 0 Accumulated DepreciationEquipment 0 Equipment 6,000
Exercise 3-05 (Video)
Sheridan Company has the following balances in selected accounts on December 31, 2020.
Accounts Receivable | $ 0 | |
Accumulated DepreciationEquipment | 0 | |
Equipment | 6,000 | |
Interest Payable | 0 | |
Notes Payable | 10,000 | |
Prepaid Insurance | 4,080 | |
Salaries and Wages Payable | 0 | |
Supplies | 2,600 | |
Unearned Service Revenue | 29,000 |
All the accounts have normal balances. The information below has been gathered at December 31, 2020.
1. | Sheridan Company borrowed $10,200 by signing a 9%, one-year note on September 1, 2020. | |
2. | A count of supplies on December 31, 2020, indicates that supplies of $960 are on hand. | |
3. | Depreciation on the equipment for 2020 is $2,200. | |
4. | Sheridan Company paid $4,080 for 12 months of insurance coverage on June 1, 2020. | |
5. | On December 1, 2020, Sheridan collected $29,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. The company had performed 1/4 of the services by December 31. | |
6. | Sheridan performed consulting services for a client in December 2020. The client will be billed $4,200. | |
7. | Sheridan Company pays its employees total salaries of $5,300 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2020. |
Prepare adjusting entries for the seven items described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No. | Account Titles and Explanation | Debit | Credit |
1. | |||
2. | |||
3. | |||
4. | |||
5. | |||
6. | |||
7. | |||
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