Sheridan Corporation's trial balance at December $31,2022,$ is presented below. All $2022$ transactions have beenrecorded except for the items described below.Unrecorded transactions and adjustments:$1$ On January $1,2022,$ Sheridan issued $1,140$ shares of $$20$ par, $6\%$ preferred stock for $$25,080.$$2$ On January $1,2022,$ Sheridan also issued $1,140$ shares of common stock for $$26,220.$Sheridan reacquired $342$ shares of its common stock on July $1,2022,$ for $$49$ per share.On December $31,2022,$ Sheridan declared the annual cash dividend on the preferred stock and a $$1\mathrm{.}50$ pershare dividend on the outstanding common stock, all payable on January $15,2023.$Sheridan estimates that uncollectible accounts receivable at year$-$end are $$5,814.$The building is being depreciated using the straight$-$line method over $30$ years. The salvage value is $$5,700.$The equipment is being depreciated using the straight$-$line method over $10$ years. The salvage value is $$4,560.$The unearned rent was collected on October $1,2022.$ It was receipt of $4$ months' rent in advance $($October $1,$$2022$ through January $31,2023).$The $10\%$ bonds payable pay interest every January $1.$ The interest for the $12$ months ended December $31,$Prepare an updated December $31,2022,$ trial balance, reflecting the journal entries in part$($a$).$Prepare a multiple$-$step income statement for the year ending December $31,2022.($List other revenues beforeother expenses.$)$SHERIDAN CORPORATIONIncome StatementFor the Year Ended December $31,2022$Your answer is partially correct.Prepare journal entries for the transactions and adjustment listed above. $($Credit account titles areautomatically indented when amount is entered. Do not indent manually.$)$No$.$ Account Titles and ExplanationDebitCreditcashPreferred StockPaid$-$in Capital in Excess of Par$-$Preferred StcCommon StockPaid$-$in Capital in Excess of Par$-$Common StoDividends PayableBad Debt ExpenseAllowance for Doubtful AccountsDepreciation Expense$3420$Accumulated Depreciation$-$BuildingsDepreciation Expense$4104$Accumulated Depreciation$-$EquipmentUnearned Rent RevenueDepreciation Expense$5301$$5$ividends Payable Bad Debt ExpenseAllowance for Doubtful Accounts $6.$ Depreciation Expense $7.$ Decumulated Depreciation$-$Buildings Accumulated Depreciation$-$EquipmentPrepare an updated December $31,2022,$ trial balance, reflecting the journal entries in part$($a$).$Your answer is partially correct.Prepare journal entries for the transactions and adjustment listed above. $($Credit account titles areautomatically indented when amount is entered. Do not indent manually.$)$No$.$ Account Titles and ExplanationDebitCreditcashPreferred StockPaid$-$in Capital in Excess of Par$-$Preferred StcCommon StockPaid$-$in Capital in Excess of Par$-$Common StoDividends PayableBad Debt ExpenseAllowance for Doubtful AccountsDepreciation Expense$3420$Accumulated Depreciation$-$BuildingsDepreciation Expense$4104$Accumulated Depreciation$-$EquipmentUnearned Rent RevenueDepreciation Expense$5301$$5$ividends Payable Bad Debt ExpenseAllowance for Doubtful Accounts $6.$ Depreciation Expense $7.$ Decumulated Depreciation$-$Buildings Accumulated Depreciation$-$Equipment

 

Your Answer Correct Answer (Used) Your answer is partially correct. Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Str Debit Credit 25080 2. Cash 26220 Common Stock Paid-in Capital in Excess of Par-Common Sto 3. Treasury Stock 16758 Cash 4. Cash Dividends 3420 Dividends Payable 5. Bad Debt Expense 5301 Allowance for Doubtful Accounts 6. Depreciation Expense 3420 Accumulated Depreciation-Buildings 7. Depreciation Expense 4104 Accumulated Depreciation-Equipment 8. Unearned Rent Revenue 6840 Rent Revenue 9. Interest Expense 5700 Interest Payable