Question

the trial balance before and after adjustment for Sheridan company at October

Maps News Translate The trial balances before and after adjustment for Sheridan Company at October 31, 2021, which is the end of its fiscal year. are as follows: Before Adjustment After Adjustment Debit Credit Debit Credit $9,170 $9,170 Cash Accounts Receivable 8,845 9,395 Supplies 2,520 765 Prepaid Insurance 2,530 3,750 34,145 34,145 Equipment $5,540 Accumulated Depreciation-Equipment $3,285 5,725 5,725 Accounts Payable Notes Payable 38,060 38,060 1,230 Salaries Payable 490 Interest Payable 0 8:21 PM 2/3/2020 DLL

Answer 1

Adjusting Entries: Date Accounts Titles and Explanation Debit Credit Oct. 31 Unearned Revenue $740 Service revenue $740 (To accrue revenue for services performed but not billed or collected) $1,755 Oct. 31 Supplies Expense Supplies (To record Suplies used.) $1,755 Oct. 31 $1,220 Insurance Expense Prepaid Incurance (To record Insurance expired) $1,220 $2.255 Oct. 31 Depreciation Expense Accumulated Depreciation (To record depreciation expense) $2,255 Oct. 31 $1,230 Salaries expense Salaries payable (To record accrued salaries) $1,230 Oct. 31 $490 Interest expense Interest payable (To record accrued salaries) $490 Oct. 31 Accounts receivable $550 Service revenue (To record revenue for services performed.) $550

$49,340 Sheridan company Income Statement For the month ended October 31, 2021 Revenue Sarvice revenue Less: Operating Expense: Depreciation expense $2,255 Insurance expense $1,220 Interest expense $1.960 Rent expense $15,265 Salaries expense $18,315 Supplies expense $1,755 Total operating expenses Net Income $40,770 $8,570 Sheridan company Statement of owner's Equity For the month ended October 31, 2021 E.Sheridan, Capital. October 1 Add: Net income $5,525 $8,570 $14,095 $10,075 $4,020 Less: E.Sheridan, Drawing E.Sheridan, Capital, October 31 $9,170 $9,395 $765 $2,530 $21,860 $34,145 $5,540 $28,605 $50,465 Sheridan company Balance Sheet As on October 31, 2021 Assets Current Assets Cash Accounts Receivable Supplies Prepaid insurance Total Current Assets Property Plant and Equipment Equipment Less: Accumulated Depreciation Equipment Total Assets Liabilities and owner's Equity Current liabilities Accounts Payable Salaries payable Unearned Sales revenue Interest payable Total current liabilities Long-term liabilities Notes Payable Total liabilities Owners' equity E.Sheridan, Capital Total owner's equity Total Liabilities & owner's Equity $5.725 $1,230 $940 $490 $8.385 $38,060 $46,445 $4,020 $4,020 $50,465