Sheridan Limited

Trial Balance

August $31,2023$

Debit Credit

Cash $$6,400$

Prepaid insurance $$3,800$

Supplies $$2,000$

Land $$18,500$

Buildings $$141,000$

Accumulated depreciation$$buildings $$20,304$

Equipment $$14,000$

Accumulated depreciation$$equipment $$3,780$

Accounts payable $$4,000$

Unearned rent revenue $$4,950$

Notes payable $$78,000$

Common shares $$79,900$

Retained earnings $$4,200$

Dividends $$4,700$

Utilities expense $$7,360$

Repairs and maintenance expense $$3,660$

Total Debits: $$262,634$

Total Credits: $$262,634$

Additional Information:

The balance in Prepaid Insurance includes the cost of four months$$ premiums for an insurance policy that will expire on September $30,2023.$

An inventory count on August $31$ shows $$580$ of supplies on hand.

Buildings and equipment are depreciated straight$-$line. From the date of purchase, the buildings have an estimated useful life of $25$ years, and the equipment has an estimated useful life of $10$ years. For both asset categories, residual value is estimated to be $10\%$ of cost$.$

$($i$)$ Rent revenue includes amounts received for September rentals in the amount of $$7,900.$

$($ii$)$ Of the unadjusted Unearned Rent Revenue of $$4,950,$ one half was earned prior to August $31.$

Salaries of $$375$ were unpaid at August $31.$

Rental fees of $$780$ were due from tenants at August $31.$ Use Accounts Receivable.

The note payable interest rate is $8\%$ per year, and the note has been outstanding since December $1,2022.$ No principal repayments are due. Interest is paid twice per year $($on June $1$ and December $1).$