On May 28, 2021, Sheridan Services purchased equipment for $102,000, giving the supplier a 1-year note at 6% (due at maturity) for $79,680, and paid the balance with cash. Sheridan also paid Wu Engineering $5,400 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 $61,910 cash as insurance proceeds for the equipment. - Your answer is partially correct. 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 tities and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2021 May 28 Equipment 102000 Notes Payable 75292 Cash 26708 May 30 Equipment 7000 Cash 7000 e Textbook and Media List of Accounts - Your answer is partially correct. 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.) Date Account Titles and Explanation Debit Credit 2021 Dec. 31 Depreciation Expense 10770 Accumulated Depreciation - Building 10770 2022 Dec. 31 Depreciation Expense 18200 18200 e Textbook and Media List of Accounts ! - Your answer is partially correct. 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 Depreciation Expense 13812 Accumulated Depreciation - Land improvements 13812 (To record depreciation expense) Oct. 4 Cash 42782 Accumulated Depreciation - Building 61730 DIODO Loss on Disposal 4488 Equipment 109000 (To record sale of equipment) e Textbook and Media List of Accounts - Your answer is partially correct. 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 O for the amounts. Round answers to decimal places, eg. 5,275.) Debit Credit Date Account Titles and Explanation 2021 Dec. 31 Depreciation Expense 12901 Accumulated Depreciation - Furniture 12901 2022 Dec. 31 Depreciation Expense 19220 Accumulated Depreciation - Mine 19220 2023 Oct. 4 Depreciation Expense 11669 Accumulated Depreciation. Vehicles 11669 (To record depreciation expense) 1 An none Oct. 4 Cash 43789 Joll do Accumulated Depreciation - Equipment 61730 Loss on Disposal 3481 Equipment 109000 (To record sale of equipment)
