You have been assigned to examine the financial statements of Sheridan Comoany for the year ended December 2017, You discover the following situations 1. Depreciation of $3,100 for 2017 on delivery vehicles was not recorded 2. The physical inventory count on December 31, 2016, improperty excluded merchandise costing $18,500 that 3. A collection of $6,000 on account from a customer received on December 31, 2017, was not recorded untl 4. In 2017, the company sold for $3,800 fully depreciated equipment that originally cost $26,500. The company 5. During November 2017, a competitor company ?0d a patent-mfngement suit against Sheridan claiming had been temporarily stored in a public warehouse. Sheridan uses a periodic inventory system January 2, 2018. credited the proceeds from the sale to the Equipment account damages of $241,500. The company's legal counsel has indicated that an unfavorable verdict is probable and a reasonable estimate of the court's award to the competitor is $123,000. The company has not reflected or disclosed this situation in the financial statements 6. Sheridan has a portfolio of trading investments. No entry has been made to adjust to market. Information on cost and fair value is as follows Cost Fair Value December 31, 2016 December 31, 2017 $99,200 $84,800 $99,200 $82,700 7. At December 31, 2017, an analysis of payroll information shows accrued salaries of $12,300. The Salaries and Wages Payable account had a balance of $16,700 at December 31, 2017, which was unchanged from its balance at December 31, 2016. 8. A large piece of equipment was purchased on January 3, 2017, for $43,000 and was charged to Maintenance and Repairs Expense. The equipment is estimated to have a service life of 8 years and no residual value. Sheridan normally uses the straight-line depreciation method for this type of equipment to insurance expense. acquisition. The maximum allowable amortization period is 10 years. 9. A $12,300 insurance premium paid on July 1, 2016, for a policy that expires on June 30, 2019, was charged 10. A trademark was acquired at the beginning of 2016 for $47,700. No amortization has been recorded since its Assume the trial balance has been prepared but the books have not been closed for 2017. Assuming all amounts are material, prepare journal entries showing the adjustments that are required. (Ignore income tax considerations.) (Credit account tities are automatically indented when amount is entered. Do not indent manually. If entry is required, select "No Entry" for the account titles and enter 0 for the amounts) No. Account Titles and Explanation 1. Debit Credit 2. 3