Prepare Adjusting Entries For Seven Items and Prepare The Appropriate Subsequent Cash Entries.

Sheridan Company has the following balances in selected accounts on December 31, 2021. Sheridan has a calendar year end. Accounts Receivable $ 0 Accumulated Depreciation-Equipment 0 Equipment 6,900 Interest Payable 0 Notes Payable 8,700 Prepaid Insurance 2,412 Salaries Payable 0 Supplies 2,460 Unearned Revenue 31,000 All the accounts have normal balances. The information below has been gathered at December 31, 2021. 1. Sheridan Company borrowed $8,700 by signing a 4%, one-year note on September 1, 2021. 2. A count of supplies on December 31, 2021, indicates that supplies of $900 are on hand. 3. Depreciation on the equipment for 2021 is $1,090. 4. Sheridan Company paid $2,412 for 12 months of insurance coverage on June 1, 2021. 5. On December 1, 2021, Sheridan collected $31,000 for consulting services to be performed evenly from December 1, 2021, through March 31, 2022. 6. Sheridan performed consulting services for a client in December 2021. The client will be billed $4,300. Payment from the customer is expected on January 14, 2022. 7. Sheridan Company pays its employees total salaries of $9,900 every Wednesday for the preceding five-day week (Monday through Friday). On Wednesday, January 5, 2022, employees were paid for the last five weekdays of 2021. Prepare adjusting entries for the seven items described above. (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 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit Dec. 1. 31 Dec. 2. 31 Dec. 3. 31 Dec. 4. 31 Dec. 5. 31 Dec. 6. 31 Dec. 7. 31 Prepare the appropriate subsequent cash entries. (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.) Date Account Titles and Explanation Debit Credit Aug. 31