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

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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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
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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