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Question 4 Sheridan Co. provides music lessons to many clients across the city. The following information is available to be used in recording annual adjusting

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Question 4 Sheridan Co. provides music lessons to many clients across the city. The following information is available to be used in recording annual adjusting entries at the company's September 30, 2017, year end: 1. On October 1, 2016, the company had a balance of $2,020 in its supplies account. Additional supplies were purchased during the year totalling $1,870. The supplies inventory on September 30, 2017, amounts to $990. 2. On November 1, 2016, Sheridan purchased a one-year insurance policy for $3,060. 3. On January 2, 2017, a client paid $1,680 for six months of lessons starting April 2, 2017. 4. On February 1, 2017, Sheridan purchased a grand piano (to be used in music lessons) for $32,400. The piano's estimated useful life is 18 years. 5. On May 1, 2017, Sheridan borrowed $29,460 from the bank and signed a 10-month, 8% note payable. Interest and principal are to be paid at maturity. 6. On August 1, 2017, Sheridan signed a contract with a neighbourhood school to provide weekly piano lessons to some of its students for a fee of $1,880 per month. The contract called for lessons to start on September 1, 2017. The school has not yet been sent an invoice for the month of September. 7. On August 15, 2017, the company paid $9,000 to Pinnacle Holdings to rent additional studio space for nine months starting September 1. Sheridan recorded the full payment as Prepaid Rent. 8. Sheridan's instructors have earned salaries of $2,570 for the last week of September 2017. This amount will be paid to the instructors on the next payday: October 6, 2017. 9. Music lessons were provided to a local church group for $1,380 on September 30, 2017. Sheridan has not yet invoiced the group or recorded the transaction. 10. In early October 2017, Sheridan received an invoice for $940 from the utility company for September utilities. The amount has not yet been recorded or paid

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