Sheridan Company prepares monthly financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September. SHERIDAN COMPANY Trial Balance (Selected Accounts) September 30, 2020 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Unearned Rent Revenue Debit Credit $2,816 3,168 14,256 $880 1,056 (Note: Debit column does not equal credit column because this is a partial listing of selected account balances) An analysis of the account balances by the company's accountant provided the following additional information: 1 A physical count of supplies revealed $1.232 on hand on September 30. 2 A two-year life insurance policy was purchased on September 1 for $3,168. 3. Equipment depreciated $2,904 per year. 4 The amount of rent received in advance that remains unearned at September 30 is $616. Using the above additional information, prepare the adjusting entries that should be made by Sheridan Company on September 30, (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation 1. Debit Credit 2. (To record the amount of office supplies used) 3. (To record insurance expired) (To record monthly depreciation) (To record rent revenue)
Sheridan Company prepares monthly financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September. SHERIDAN COMPANY Trial Balance (Selected Accounts) September 30, 2020 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Unearned Rent Revenue Debit Credit $2,816 3,168 14,256 $880 1,056 (Note: Debit column does not equal credit column because this is a partial listing of selected account balances) An analysis of the account balances by the company's accountant provided the following additional information: 1 A physical count of supplies revealed $1.232 on hand on September 30. 2 A two-year life insurance policy was purchased on September 1 for $3,168. 3. Equipment depreciated $2,904 per year. 4 The amount of rent received in advance that remains unearned at September 30 is $616. Using the above additional information, prepare the adjusting entries that should be made by Sheridan Company on September 30, (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation 1. Debit Credit 2. (To record the amount of office supplies used) 3. (To record insurance expired) (To record monthly depreciation) (To record rent revenue)
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 14EB: Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on...
Related questions
Question
Give me correct answer and explanation..
Transcribed Image Text:Sheridan Company prepares monthly financial statements. Below are listed some selected accounts and their balances in the
September 30 trial balance before any adjustments have been made for the month of September.
SHERIDAN COMPANY
Trial Balance (Selected Accounts)
September 30, 2020
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation-Equipment
Unearned Rent Revenue
Debit
Credit
$2,816
3,168
14,256
$880
1,056
(Note: Debit column does not equal credit column because this is a partial listing of selected account balances)
An analysis of the account balances by the company's accountant provided the following additional information:
1
A physical count of supplies revealed $1.232 on hand on September 30.
2
A two-year life insurance policy was purchased on September 1 for $3,168.
3.
Equipment depreciated $2,904 per year.
4
The amount of rent received in advance that remains unearned at September 30 is $616.
Using the above additional information, prepare the adjusting entries that should be made by Sheridan Company on September 30,
(List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.
If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
No. Account Titles and Explanation
1.
Debit
Credit
2.
(To record the amount of office supplies used)
3.
(To record insurance expired)
(To record monthly depreciation)
(To record rent revenue)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning