On December 31, 2025, Sheridan Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sheridan Co. agreed to accept a $309,400 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sheridan is much more creditworthy and has various lines of credit at 7%. (a) Prepare the journal entry to record the transaction of December 31, 2025, for the Sheridan Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Dec. 31, 2025 Account Titles and Explanation Debit Credit
On December 31, 2025, Sheridan Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sheridan Co. agreed to accept a $309,400 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sheridan is much more creditworthy and has various lines of credit at 7%. (a) Prepare the journal entry to record the transaction of December 31, 2025, for the Sheridan Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Dec. 31, 2025 Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:**Transaction Details on December 31, 2025**
On December 31, 2025, Sheridan Co. delivered environmental consulting services to Hayduke Co. Hayduke was short on cash, prompting Sheridan Co. to accept a $309,400 zero-interest-bearing note, maturing on December 31, 2027, as complete payment. Hayduke is considered somewhat risky in terms of credit and typically borrows funds at an 11% interest rate. Conversely, Sheridan is deemed much more creditworthy with various credit lines available at 7%.
---
**Journal Entry Preparation**
Prepare the journal entry to document the transaction dated December 31, 2025, for Sheridan Co.
**Instructions:**
- Round present value factor calculations to five decimal places, e.g., 1.25124, and final answers to zero decimal places, e.g., 5,275.
- If no journal entry is necessary, select "No Entry" for the account titles and enter "0" for the amounts.
- Credit account titles are automatically indented once the amount is input. Do not manually indent.
- List all debit entries prior to credit entries.
**Journal Entry Table**
| Date | Account Titles and Explanation | Debit | Credit |
|--------------|-------------------------------|-------|--------|
| Dec. 31, 2025 | | | |
| | | | |
| | | | |
Note: The journal entries for debit and credit will be filled out according to the specific nature of the transaction as calculated.
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