Question 6 of 8 < > -/ 40 E Prepare the journal entries to be made by Sheridan Inc. at August 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Aug. 31 (To record interest earned) 31 (To record bank service charge) 31 (To correct error in recording cheque) 31 (To record safety deposit box fee)
Question 6 of 8 < > -/ 40 E Prepare the journal entries to be made by Sheridan Inc. at August 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Aug. 31 (To record interest earned) 31 (To record bank service charge) 31 (To correct error in recording cheque) 31 (To record safety deposit box fee)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sheridan Inc.’s bank statement from Western Bank at August 31, 2022, shows the following information.
| Balance, August 1 | $15,088 | ||
| August deposits | 67,160 | ||
| Cheques cleared in August | (63,186) | ||
| Bank credit for interest earned not yet accrued | 45 | ||
| Bank debit for safety deposit box fee | (25) | ||
| Bank service charge | (50) | ||
| Balance, August 31 | $19,032 |
A summary of the Cash account in the ledger for August shows the following: Reconciled cash balance, August 1, $15,548; cash receipts deposited $70,840; cheque disbursements $67,682; and unreconciled cash balance, August 31, $18,706. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,600 and outstanding cheques of $4,140. In addition, you determine that there was an error involving a company cheque drawn in August: A cheque for $400 payable to a supplier on account that cleared the bank in August was journalized and posted for $40.
Transcribed Image Text:Question 6 of 8
>
-/ 40
Prepare the journal entries to be made by Sheridan Inc. at August 31. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Aug. 31
(To record interest earned)
31
(To record bank service charge)
31
(To correct error in recording cheque)
31
(To record safety deposit box fee)
List of Accounts
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