SHERIDAN LTD$.$ Adjusted Trial Balance $($partial$)$A partial adjusted trial balance follows for Sheridan Ltd$.$ at January $31,2024.$ The company's fiscal year end is December $31$ and it

makes adjustments monthly. It has already recorded any required adjusting journal entries for the month of January and the amounts

shown below are correct.

$($a$)$

Your answer is correct.

If $$1,610$ in Deferred Revenue was earned in January and recorded as Service Revenue, what was the balance in Deferred

Revenue at January $1?$ Assume there were no other transactions that affected Deferred Revenue during January because no

customers paid the company anything in advance during the month of January. $($Hint: Prepare the January entries for this

transaction, post to the Deferred Revenue T account, and work backward to determine the opening balance.$)$

The balance in Deferred Revenue $

$($b$)$

Your Answer Correct Answer $($Used$)$

Your answer is incorrect.

If the amount in the Depreciation Expense account is the depreciation for the month of January, when was the equipment

purchased? Assume that there have been no purchases or sales of equipment since this original purchase and that Sheridan uses

the straight$-$line method of depreciation. $($Hint$.$ Use the monthly depreciation and accumulated depreciation amounts to

determine how many months the equipment has been depreciated.$)$

The equipment was purchased at the

$($c$)$

Your answer is partially correct.

If the amount in Insurance Expense is the amount of the adjusting entry for the month of January, and the original insurance

premium was for one year, what was the total premium $($amount paid for the policy$)$ and when was the policy purchased? $($Hint:

Use the prepaid insurance amount at January $31$ and monthly insurance expense to determine how many months of insurance

coverage remain. Once you know that, you can work backward to determine the total amount paid for the policy and when.$)$

The total premium

The policy was purchased on