Sheridan had the following account balances at December 31, 2023: Cash Accounts Receivable Supplies Prepaid Insurance Inventory Equipment 1. 2. 3. 4. 5. During 2024, the following transactions occurred: 6. 7. 8. 9. $24,000 10. 11. 25,000 50,000 3,000 12. 46,500 75,000 Information for adjusting entries: Accumulated Depreciation, Equipment 25,000 6,000 50,000 75,000 67,500 Wages Payable Accounts Payable Common Shares Retained Earnings Sales of paninis for cash were $635,000, and sales of paninis on account were $60,000. Purchases of ingredients were $171,000, all on account. Collections from customers for sales on account totalled $17,600. The company paid $44,000 for utilities expenses. Ingredients with a cost of $200,000 were used in paninis that were sold. Payments for ingredients purchased on account totalled $215,000. The company paid $92,800 for wages. A dividend of $34,200 was declared and paid at the end of the year. The balance in the Supplies account at the end of 2024 was $1,200. Wages owed to employees at the end of 2024 were $3,420. At the end of 2024, the account balance in Prepaid Insurance was $1,500. The equipment had an estimated useful life of eight years with a residual value of $3,000. Prepare journal entries for transactions 1 through 8. Create new accounts as necessary. (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. 2. 3. 4. 5. 6. 7. 8. Debit Credit
Sheridan had the following account balances at December 31, 2023: Cash Accounts Receivable Supplies Prepaid Insurance Inventory Equipment 1. 2. 3. 4. 5. During 2024, the following transactions occurred: 6. 7. 8. 9. $24,000 10. 11. 25,000 50,000 3,000 12. 46,500 75,000 Information for adjusting entries: Accumulated Depreciation, Equipment 25,000 6,000 50,000 75,000 67,500 Wages Payable Accounts Payable Common Shares Retained Earnings Sales of paninis for cash were $635,000, and sales of paninis on account were $60,000. Purchases of ingredients were $171,000, all on account. Collections from customers for sales on account totalled $17,600. The company paid $44,000 for utilities expenses. Ingredients with a cost of $200,000 were used in paninis that were sold. Payments for ingredients purchased on account totalled $215,000. The company paid $92,800 for wages. A dividend of $34,200 was declared and paid at the end of the year. The balance in the Supplies account at the end of 2024 was $1,200. Wages owed to employees at the end of 2024 were $3,420. At the end of 2024, the account balance in Prepaid Insurance was $1,500. The equipment had an estimated useful life of eight years with a residual value of $3,000. Prepare journal entries for transactions 1 through 8. Create new accounts as necessary. (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. 2. 3. 4. 5. 6. 7. 8. Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Sheridan had the following account balances at December 31, 2023:
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Inventory
Equipment
1.
2.
4.
5.
During 2024, the following transactions occurred:
6.
7.
8.
3. Collections from customers for sales on account totalled $17,600.
9.
$24,000
10.
11.
25,000
Wages Payable
50,000 Accounts Payable
Common Shares
Retained Earnings
3,000
12.
46,500
75,000
Accumulated Depreciation, Equipment 25,000
6,000
Information for adjusting entries:
The company paid $44,000 for utilities expenses.
Ingredients with a cost of $200,000 were used in paninis that were sold.
Payments for ingredients purchased on account totalled $215,000.
The company paid $92,800 for wages.
A dividend of $34,200 was declared and paid at the end of the year.
50,000
Sales of paninis for cash were $635,000, and sales of paninis on account were $60,000.
Purchases of ingredients were $171,000, all on account.
75,000
67,500
The balance in the Supplies account at the end of 2024 was $1,200.
Wages owed to employees at the end of 2024 were $3,420.
At the end of 2024, the account balance in Prepaid Insurance was $1,500.
The equipment had an estimated useful life of eight years with a residual value of $3,000.
Prepare journal entries for transactions 1 through 8. Create new accounts as necessary. (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.
2.
3.
4.
5.
6.
7.
8.
Debit
Credit
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