Sheridan Company has the following information available for accruals for the ye

Question

Sheridan Company has the following information available for accruals for the year ended December 31, 2017. The company adjusts its accounts annually. 1. The December utility bill for $355 was unrecorded on December 31. Sheridan paid the bill on January 11. 2. Sheridan is open 7 days a week and employees are paid a total of $2,940 every Monday for a 7-day (Monday–Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28–Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. 3. Sheridan signed a $37,800, 5% bank loan on November 1, 2016, due in 2 years. Interest is payable on the first day of each following month. 4. Sheridan receives a fee from Pizza Shop next door for all pizzas sold to customers using Sheridan’s facility. The amount owed for December is $250, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) 5. Sheridan rented some of its unused warehouse space to a client for $5,040 a month, payable the first day of the following month. It received the rent for the month of December on January 2. Partially correct answer. Your answer is partially correct. Try again. For each situation, prepare the adjusting entry required at December 31. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Explanation / Answer

Journal entries

Debit Credit Utility expense $355 To Utility payable $355 Salary & wages $1,680 to Salary payable $1,680 interest expense $315 To interest payable $315 Account receivable $250 To Service revenue $250 Rent receivable $5,040 To Rent revenue $5,040

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.