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Question 1 of 10 (b) Your answer is incorrect Quantify the amount by which Sheridan's working capital would have changed as a result of making the necessary adjusting entries Working Capital S

Question 1 of 10 (b) Your answer is incorrect Quantify the amount by which Sheridan's working capital would have changed as a result of making the necessary adjusting entries Working Capital S

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 1 of 10 (b) Your answer is incorrect Quantify the amount by which Sheridan's working capital would have changed as a result of making the necessary adjusting entries. Working Capital $
Transcribed Image Text:Question 1 of 10 (b) Your answer is incorrect Quantify the amount by which Sheridan's working capital would have changed as a result of making the necessary adjusting entries. Working Capital $
Financial Statement Impact Sheridan Ltd's trial balance at September 30, 2021, was as follows: Question 1 of 10 Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation-equipment Deferred revenue Accounts payable Bank loan payable Common shares Retained earnings Dividends declared Service revenue Supplies expense Depreciation expense Salaries expense Utilities expense Interest expense Insurance expense Income tax expense 2 3 Debit $152.000 300,000 36.000 1.476.000 55,000 25,000 164,000 661.000 11.000 21,000 66.000 32,000 Credit $604,000 $9.000 110,000 475,000 25,000 449,000 1.277.000 The company's bookkeeper had failed to record adjusting entries for the following 1 The company's employees had earned salaries of $22.800 during the last six working days in September. These will be paid in the first week of October Interest on the bank loan was not accrued for the month. The loan bears interest at 6% No depreciation expense was recorded for the equipment for September. The equipment is expected to have an estimated 4 six-year useful life. The company satisfied its performance obligations related to $20,000 of the deferred revenue. ////
Transcribed Image Text:Financial Statement Impact Sheridan Ltd's trial balance at September 30, 2021, was as follows: Question 1 of 10 Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation-equipment Deferred revenue Accounts payable Bank loan payable Common shares Retained earnings Dividends declared Service revenue Supplies expense Depreciation expense Salaries expense Utilities expense Interest expense Insurance expense Income tax expense 2 3 Debit $152.000 300,000 36.000 1.476.000 55,000 25,000 164,000 661.000 11.000 21,000 66.000 32,000 Credit $604,000 $9.000 110,000 475,000 25,000 449,000 1.277.000 The company's bookkeeper had failed to record adjusting entries for the following 1 The company's employees had earned salaries of $22.800 during the last six working days in September. These will be paid in the first week of October Interest on the bank loan was not accrued for the month. The loan bears interest at 6% No depreciation expense was recorded for the equipment for September. The equipment is expected to have an estimated 4 six-year useful life. The company satisfied its performance obligations related to $20,000 of the deferred revenue. ////
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