On May 28, 2021, Sheridan Services purchased equipment for $100,800, giving the supplier a 1-year note at 6% (due at maturity) for $80,180, and paid the balance with cash. Sheridan also paid Wu Engineering $8,400 cash for installing the equipment on May 30. The equipment's useful life was estimated to be five years, with an $19,200 residual value. The straight-line method of depreciation is used for equipment and Sheridan has a calendar year end. On October 4, 2023, the equipment was destroyed in an accident. Sheridan received $61,590 cash as insurance proceeds for the equipment Record the transactions of May 28 and 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 2021 May 28 May 30 Record the depreciation expense for Sheridan for the fiscal years ended December 31, 2021 and 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation 2021 Dec. 31 2022 Dec. 31 Prepare all of the necessary journal entries on October 4, 2023 following the destruction of the asset. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Prepare all of the necessary journal entries on October 4, 2023 following the destruction of the asset. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 2023 Oct. 4 (To record depreciation expense) Oct. 4 (To record sale of equipment) Repeat parts (b) and (c) under the assumption that Sheridan Services used the diminishing balance method, using a rate of 20%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,275) Account Titles and Explanation Debit Credit Date 2021 Dec. 31 2022 Dec. 31 2023 Oct. 4 (To record depreciation expense) Oct. 4 To record sale of equipment)
