Question Completion:
The following trial balance was taken from the books of Sheridan Corporation on December 31, 2020.
Account Debit Credit
Cash $8,500
Accounts Receivable 40,700
Notes Receivable 11,200
Allowance for Doubtful Accounts $1,870
Inventory 35,300
Prepaid Insurance 4,720
Equipment 122,600
Accumulated Depreciation--Equip. 14,100
Accounts Payable 10,100
Common Stock 49,100
Retained Earnings 64,550
Sales Revenue 268,000
Cost of Goods Sold 123,900
Salaries and Wages Expense 48,600
Rent Expense 12,200
Totals $407,720 $407,720
At year end, the following items have not yet been recorded.
a. Insurance expired during the year, $2,000.
b. Estimated bad debts, 1% of gross sales.
c. Depreciation on furniture and equipment, 10% per year.
d. Interest at 6% is receivable on the note for one full year.
e. Rent paid in advance at December 31, $5,400 (originally charged to expense).
f. Accrued salaries at December 31, $5,800.
Required:
a. Prepare the necessary adjusting entries.
b. Prepare the necessary closing entries.
Answer:
Sheridan Corporation
a. Adjusting Journal Entries on December 31, 2020:
a. Debit Insurance Expense $2,000
Credit Prepaid Insurance $2,000
To record the insurance expense for the year.
b. Debit Bad Debts Expense $2,680
Credit Accounts Receivable $2,680
To record bad debts written off.
c. Debit Depreciation Expense - Equipment $12,260
Credit Accumulated Depreciation - Equipment $12,260
To record the depreciation expense for the year.
d. Debit Interest Receivable $672
Credit Interest Revenue $672
To record interest revenue receivable on the note.
e. Debit Rent Prepaid $5,400
Credit Rent Expense $5,400
To record rent prepaid, previously recorded as an expense.
f. Debit Salaries and Wages Expense $5,800
Credit Salaries Payable $5,800
To record accrued salaries.
b. Closing Journal Entries on December 31, 2020:
Debit Sales Revenue $268,000
Interest Revenue $672
Credit Income Summary $268,672
To close the revenue accounts to the income summary.
Debit Income Summary $202,040
Credit:
Cost of Goods Sold 123,900
Salaries and Wages Expense 54,400
Rent Expense 6,800
Bad debts Expense 2,680
Insurance Expense 2,000
Depreciation Expense 12,260
To close the expense accounts to the income summary.
Explanation:
a) Data and Calculations:
Sheridan Corporation
Unadjusted Trial Balance as of December 31, 2020:
Account Titles Debit Credit
Cash $8,500
Accounts Receivable 40,700
Notes Receivable 11,200
Allowance for Doubtful Accounts $1,870
Inventory 35,300
Prepaid Insurance 4,720
Equipment 122,600
Accumulated Depreciation--Equip. 14,100
Accounts Payable 10,100
Common Stock 49,100
Retained Earnings 64,550
Sales Revenue 268,000
Cost of Goods Sold 123,900
Salaries and Wages Expense 48,600
Rent Expense 12,200
Totals $407,720 $407,720
Adjustments:
a. Insurance Expense $2,000 Prepaid Insurance $2,000
b. Bad Debts Expense $2,680 Accounts Receivable $2,680 (1% of $268,000)
c. Depreciation Expense - Equipment $12,260 Accumulated Depreciation - Equipment $12,260 (10% of $122,600)
d. Interest Receivable $672 Interest Revenue $672 (6% of $11,200)
e. Rent Prepaid $5,400 Rent Expense $5,400
f. Salaries and Wages Expense $5,800 Salaries Payable $5,800
Sheridan Corporation
Adjusted Trial Balance as of December 31, 2020:
Account Titles Debit Credit
Cash $8,500
Accounts Receivable 38,020
Notes Receivable 11,200
Interest Receivable 672
Allowance for Doubtful Accounts $1,870
Inventory 35,300
Prepaid Insurance 2,720
Prepaid Rent 5,400
Equipment 122,600
Accumulated Depreciation--Equip. 26,360
Accounts Payable 10,100
Salaries Payable 5,800
Common Stock 49,100
Retained Earnings 64,550
Sales Revenue 268,000
Interest Revenue 672
Cost of Goods Sold 123,900
Salaries and Wages Expense 54,400
Rent Expense 6,800
Bad debts Expense 2,680
Insurance Expense 2,000
Depreciation Expense 12,260
Totals $426,452 $426,452
b) The adjusting entries made in the accounting records of Sheridan Corporation comply with the accrual concept and the matching principle of generally accepted accounting principles. These accounting principles require that expenses and revenues for a period are recognized in the period they occur and not when cash is exchanged. The closing entries show the revenue and the expense accounts closed to the income summary.
Short term goals are goals that can be reached in:
1-7 days.
O1-12 months.
01-5 years.
O24 hours.
1-2 years.
Answer:
1 month to 12 months
Explanation:
a short term goal is a goal that can be reached within a year while long term goal is a goal that can be achieved over a year
a cellular phone is a phone that is cellular" How might you explain to the speaker the problem with this assertion?
Help with a human resources question regarding discrimination and harassment laws?
Some labor laws that can be quoted about the dismissed employee are:
Employment-Based DiscriminationThe Fair Labor Standards ActWhat are Discrimination Laws?This refers to the legislation that is put in place to protect workers and people from being denied employment or other opportunities based on discrimination.
Hence, we can see that in order to investigate the claim of the dismissed employee, there would need to be specific grounds for dismissal, otherwise, industrial actions would probably follow.
Read more about discrimination laws here:
https://brainly.com/question/2346376
#SPJ1
For an output level exactly at QE, the value of a unit to a buyer is equal to the cost of a unit to a seller.
Suppose a firm that produces for this market is able to influence the market price, which leads to an outcome that differs from the free market equilibrium shown in the previous graph. Such a situation is characterized by , which is an example of .
For an output level exactly at QE, the value of a unit to a buyer is equal to the cost of a unit to a seller.
Suppose a firm that produces for this market is able to influence the market price, which leads to an outcome that differs from the free market equilibrium shown in the previous graph. Such a situation is characterized by an external factors which is an example of inefficiency.
What is the effect of change in equilibrium?When the equilibrium is affected such that the price of goods goes down beyond the equilibrium there will be shortage such that the price of goods demanded will now be higher than the price of commodity that has been supplied. This is a shortage to the supplier. Change in equilibrium occurs when external factors affects demand such as taste.
Therefore, suppose a firm that produces for this market is able to influence the market price, which leads to an outcome that differs from the free market equilibrium shown in the previous graph. Such a situation is characterized by an external factors which is an example of inefficiency.
Learn more on market equilibrium below
https://brainly.com/question/12252562
#SPJ1
What is the impact on cash flow from operations in the current year based on the change in operating assets and liabilities listed below?
Which is one advantage of learning a trade compared to attending a four-year
college?
A. Learning a trade requires more time in an academic setting.
B. Learning a trade often costs more.
C. Learning a trade has a higher lifetime earning potential.
D. Learning a trade typically requires less time in school.
Answer:
C. Learning a trade has a higher lifetime earning potential.
Answer: learning a trade has a higher lifetime earning potential
Explanation:
Rights are offset by _____, which are obligations to perform certain tasks and duties.
What impact does interest have on the cost of the purchases you make when using credit? OA. Interest has no impact because it is separate from the actual purchase prices. B. Interest can cause the overall cost of your purchases to increase. C. Interest can cause the overall cost of your purchases to decrease. O D. Interest has no impact because most credit cards do not charge interest. SUBMIT
Interest has no impact because most credit cards do not charge interest.
What are the effects of interest rates on consumers?The Effect of Interest Rates on Consumer Behavior Interest rates impact the cost of borrowing money as well as the returns that savers can earn on their investments. An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed. When interest rates are high, some loans become too costly and borrower demand may lessen, which reduces the total consumption of loans. Conversely, when interest rates drop, consumers take advantage of the lower loan rates, which increases demand for loan products.
The correct answer is D.
Learn more about the interest rates on consumers, refer:
https://brainly.com/question/11192500
#SPJ9
Which of the following is an example of an adjusting entry?
A. Revenue that has been billed but not yet paid
B. Revenue from a prior accounting period
C. Revenue in the form of products as opposed to cash
D. Revenue that has been billed and paid
The correct answer is option A. An example of an adjusting entry is Revenue that has been billed but not yet paid
What is an adjusting entry?These are entries that share correct amount between income and expenditure in the period they occur, usually at the end of the financial period.
It is to be noted that adjusting entries are alteration made to journal entries that have been previously recorded.
Learn more about adjusting entries here: https://brainly.com/question/22635583
#SPJ1
Pharoah Company has identified that the cost of a new computer will be $40000, but with the use of the new computer, net income will increase by $3000 a year. If depreciation expense is $1000 a year, the cash payback period is: 13.3 years. 20.0 years. 40.0 years. 10.0 years.
The correct option is payback Period [tex]10.0[/tex] Years.
Payback Period:
The time it takes to recoup the cost of an investment is referred to as the payback period. It is simply the amount of time it takes an investment to break even. The payback period is crucial since people and businesses invest money primarily to be reimbursed.
The temporal worth of money is disregarded. All other capital budgeting strategies take into account the idea of the time value of money. According to the principle of time value of money, a rupee now is worth more than a rupee tomorrow. In order to arrive at discounted flows, different strategies discount future inflows.
You can use the mathematical formula to determine the payback period: Payback Period = Initial investment / Cash flow per year.
Annual Cash flows = Depreciation + Net income
[tex]= 3000+1000 \\=4000[/tex]
Payback Period = Investment / Annual Cash flows
[tex]= 40,000/4,000[/tex]
[tex]= 10.0[/tex] years.
Learn more about payback period here brainly.com/question/23149718
#SPJ1
PlastiPharm produces a foundational product that sits on a shelf until it is needed and added to another product. In reviewing the process of combining the two products, the production staff realized that the foundational products are sometimes not tested, although the final product is always tested. They determined that all the foundational products will now undergo testing. The additional testing will add time and effort, which translates to additional costs, so why would PlastiPharm want to perform the additional testing?
a.The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts).
b.Making sure that all parts are tested ensures that the company is ready to respond to last-minute orders.
c.The additional testing will help the company meet customer demands for certification that all their products have been tested 100 percent of the time.
d.Testing all the parts addresses any questions that customers might have about quality or performance of materials.
PlastiPharm would want to perform the additional testing because:
The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts). (Option C)Testing all the parts addresses any questions that customers might have about quality or performance of materials. (Option D)Why do manufacturers carry out testing?
Rigorous testing is usually carried out by companies to ensure that defects and hazards are detected before the products are sent out into the market.
This way, their liability from product defects is reduced or eliminated completely.
Learn more about testing at;
https://brainly.com/question/15243255
#SPJ1
Which of these statements is true about the drug utilization management (UM) rules?
Answer: Prior authorization quantity limit and step therapy are some examples of the coverage rules
Explanation:
The statement 'prior authorization, quantity limit, and step therapy are some examples of the coverage rules" is true. Drug utilization management (DUR) is a set of methods used to ensure the appropriate use of medications.
These methods can include prior authorization, quantity limits, and step therapy.
Prior authorization is a process where a health plan requires the prescriber to obtain approval from the plan before a medication can be dispensed. This is typically used for high-cost or high-risk medications.
Quantity limits are restrictions on the amount of medication that a patient can receive in a given period of time. This is typically used to prevent patients from stockpiling medications or using them for purposes other than what they are intended for.
Step therapy is a process where a patient must try one or more less expensive or less invasive treatments before they can be prescribed a more expensive or more invasive treatment. This is typically used to ensure that patients are only using the most appropriate treatment for their condition.
The UN does not have specific rules on DUR, but many countries have their own regulations. These regulations are designed to ensure that patients have access to safe and effective medications, while also preventing the misuse of medications.
Therefore, the given statement is true.
To know mroe about Drug utilization management:
https://brainly.com/question/27937382
#SPJ3
Your question is incomplete, most probably the complete question is :
The statement is about the drug utilization management UN rules. true or false?
prior authorization quantity limit and step therapy are some examples of the coverage rules
Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 800,000 units, the company pays $600,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $250,000, of which $70,000 are fixed costs. What is the amount of contribution margin per unit?
Based on the fixed costs of the Rocky Mountain Bottling Company, the contribution margin per unit is $0.40 per unit
How is the contribution margin found?First, find the variable costs:
= 300,000 + (250,000 - 70,000)
= $480,000
The contribution margin per unit is:
= (Sales - variable costs) / number of units
= (800,000 - 480,000) / 800,000
= $0.40 per unit
Find out more on contribution margin at https://brainly.com/question/24309427
#SPJ1
What are some of your main personal, academic, and professional goals?
Think positive to stay focused.
Stay resilient.
Make time to read.
Manage your time.
Find time to relax.
Strive for excellence.
Build a strong network.
Build good study habits.
If you are interested in investing in a stock. Mark which of the following is a way you can PROFIT from your investment? (Check all that apply)
Holding the Stock for at least 5 years
Principal
Dividends
Selling the stock at a higher price than you paid for it
One can profit from stock investment through dividends and selling the stock at a higher price
What is stock investment?
Stock investment means buying shares in a company in expectation of dividends and capital gains, which can be achieved by selling at a higher price than the initial purchase price.
Basically, gains from stocks are through dividend yield and capital gains, which means that principal receipt is not applicable since that applies to bond or debt issuance.
Holding the stock for 5 years does not guarantee a positive return because prices cannot be predicted.
Read more on stock investment on:https://brainly.com/question/17190441
#SPJ1
1. Define economics from perspective of wealth, welfare, Scarcity & Growth which, defenation more suits for economics? Why ?
Economics can be defined as the study of the scarce resources that are in a [place and how to use the scarce resources to carry out production of goods and services for the growth of society.
Why is this a great definition of economics?This is due to the fact that it takes into consideration the fact that there a limited resources in a nation.
And despite these the needs are plenty and so it is useful that the scarce resources are well utilized to solve the issues of man.
Read more on economics here:
https://brainly.com/question/17996535
#SPJ1
what do multinational corporations needs to balance when making decisions about social responsibilities?
What multinational corporations needs to balance when making decisions about social responsibilities is conflicting interests of stakeholders .
Why is it necessary for multinational corporations to balance conflicting interests of stakeholders?
Multinational corporations needs to balance conflicting interests of stakeholders in their decisions most important in human rights because the stakeholders are key part in the organization.
And any decision that affect the corporation will definitely affect all the stakeholders.
Learn more about decision making on:
https://brainly.com/question/12550670
#SPJ1
Has this interview prompted you to make any changes in the way that you view or
manage your personal finances? Do you think it will impact how you handle your personal
finances in the future? Explain.
The interview referring to the issue is Elizabeth White's to Ted about personal financial crises, leading to reflection on the needs of managing personal finances.
The speaker warns about the need to save financial resources in the present, to avoid the consequences of unnecessary expenses in the future.
What is the personal budget?It corresponds to a simple and objective tool for identifying an individual's income and expenses, which allows greater allocation of resources to objectives and goals, in addition to greater control over finances.
Therefore, through Elizabeth White's interview, the need to talk about finance is perceived, even if this fact causes embarrassment to individuals, because only in this way can knowledge, innovation and personal planning be increased.
Find out more about personal budget here:
https://brainly.com/question/1943261
#SPJ1
Can someone please help me do the cash flows with ZInser and without Zinser? I would really appreciate it. I am really stuck on this and I have no clue on how to do the calculations for the cash flows. Please help me. Thank you.
Also, I think my net sales are wrong too. Please help me out.
Answer:
It's blur can u repost it so that i can see it
Shoprite environmental impact on people
ShopRite impacts the environment by reducing harm to the environment and creating job in the recycling sector.
What is an environment?It should be noted that an environment simply means the surrounding where an organism lives.
At ShopRite, plastics wastes that are generated are recycled into carrier bags. This helps in reducing harm to the environment.
Learn more about environment on:
brainly.com/question/17413226
#SPJ1
True or false: We always behave in ways that are congruent with our personality type.
We always behave in ways that are congruent with our personality type. This statement was the false. Thus, option (b) is correct.
What is personality?
The term "personality" refers to a person's characteristics of thinking, believing, and perceiving. The personality always reflects the person's identity. The personality not only developed the look but also helped with the growth. For example, a celebrity always maintains her personality. Personality reduced the conflict and damage.
A person should behave according to the situation. The person does not always behave the same. It depends on the situation and according to the mood of the person.
The personality reflects the person's looks and behavior. A person's personality fluctuates when it doesn't behave congruently.
As a result, we always behave in ways that are congruent with our personality type it totally false. Therefore, option (b) is correct.
Learn more about on personality, here:
https://brainly.com/question/2249291
#SPJ2
Which factor plays the biggest role in motivating economic decisions in a market economy?
A. Corruption in the leadership of powerful groups
B. Competition between different businesses
C. Commitment to maintaining a traditional lifestyle
D. Cooperation between governments and citizens
Competition between different businesses plays the biggest role in motivating economic decisions in a market economy. Thus, option (b) is correct.
What is a market economy?A market economy is an economic system in which the production and distribution of goods and services are determined by the interaction between consumers and businesses in the marketplace. In a market economy, decisions about what to produce, how much to produce, and what price to charge are made by businesses in response to changes in demand from consumers.
The biggest factor that motivates economic decisions in a market economy is competition between different businesses. This competition encourages businesses to be innovative and efficient in order to stay ahead of their rivals. As businesses strive to outcompete one another, they are also incentivized to produce goods and services that are of higher quality and at lower prices.
Therefore, it can be concluded that competition between different businesses plays the biggest role in motivating economic decisions in a market economy. Hence, option (b) is correct.
Learn more about market economy, here:
https://brainly.com/question/2343400
#SPJ5
One of the primary feeds for beef cattle is corn. The following table presents the average price in dollars for a bushel of corn and a pound of ribeye steak for 10 consecutive months.
Corn Price ($/bu)
Ribeye Price ($/lb)
6.26
13.32
6.00
12.25
5.76
12.53
6.33
13.33
6.46
13.28
6.44
13.01
What is the slope of the regression line for predicting the ribeye price from the corn price? Round to 2 decimal places
1.24603+5.18423x
If the price of corn differs by $1 per bushel then the price of ribeye differs by $1.7071.
The price of corn differs by $0.35 per bushel the price of ribeye differs by $1.7071.* 0.35 = 0.595595
= $0.60.
Corned beef is a slice of processed lean meat made by soaking brisket in a solution of salt and spices to season and soften it. Corned beef provides proteins and nutrients such as iron and vitamin B12, but fat. And relatively high in sodium. It is also a source of certain compounds that may increase the risk of cancer.
Corned beef is made from relatively inexpensive parts of brisket. Meat undergoes a long aging process with large grains of rock salt, or "salt grains" and salt water. By simmering it slowly, it transforms hard beef into a very soft and flavorful part.
Learn more about bushel at
https://brainly.com/question/24725851
#SPJ1
What type of trading earns you money when you accurately predict that a stock will lose value?
The type of trading that earns you money when you accurately predict that a stock will lose value short-selling trades. This is further explained below.
What are short-selling trades?Generally, When an investor borrows a security and then sells it on the open market with the intention of buying it back later at a lower price, this transaction is known as short selling.
In conclusion, Short-selling transactions are a sort of trading that may provide profits for traders who successfully forecast that the value of a stock will decrease in the future.
Read more about short-selling trades
https://brainly.com/question/12736990
#SPJ1
When there is a positive externality in a free market, too much of the good is produced and consumed. True or false?.
When there is a positive externality in a free market, too much of the good is produced and consumed. This statement is false.
Positive externalities happen when the usage of a good or its production results in a benefit to a third party.
For instance, you receive a private advantage when you consume education. However, there are advantages for the rest of society as well.
For instance, you can educate others, and as a result, they gain from your education. (A positive externality of consumption)
Positive externalities cause market failure and underconsumption.
Among the government initiatives to boost demand for items with favorable externalities
Regulations and guidelines - minimum school ageIn order to boost the stock of high-quality housing, the government is creating more council housing.Price-lowering and consumption-encouraging subsidies, such as those provided by the government for rural train services.Hence, the given statement is false.
Learn more about free market:
https://brainly.com/question/2398546
#SPJ1
On January 1, 1990, Emilio deposited $1650 into a savings account paying
6.2% interest, compounded monthly. If he hasn't made any additional
deposits or withdrawals since then, and if the interest rate has stayed the
same, in what year did his balance hit $3300, according to the rule of 72?
OA. 2001
B. 2003
OC. 2000
D. 2002
The time required to get a total amount of $3,300.00 with compounded interest on a principal of $1,650.00 at an interest rate of 6.2% per year and compounded 12 times per year is 11.209 years. hence the answer is
A. 2001
Compound Interest Calculation(about 11 years 3 months)
First, convert R as a percent to r as a decimal
r = R/100
r = 6.2/100
r = 0.062 per year,
Then, solve the equation for t
t = ln(A/P) / n[ln(1 + r/n)]
t = ln(3,300.00/1,650.00) / ( 12 × [ln(1 + 0.062/12)] )
t = ln(3,300.00/1,650.00) / ( 12 × [ln(1 + 0.0051666666666667)] )
t = 11.209 years
Learn more about Compound Interest here:
https://brainly.com/question/24924853
#SPJ1
what is e-reputation?
17. Use the table below to draw a component bar chart and multiple bar chart. Maize (tons) Millet (tons) Rice (tons) 60 20 20 70 30 10 20 45 70 Year 2012 2013 40 80 2014 2015 2016 50 (Note: Use a graph sheet to draw). 35 40 60 Total 100 140 110 120 180 A
See attachment for the component bar chart and the multiple bar chart
How to draw the bar charts?The table of values is given as:
Maize (tons) Millet (tons) Rice (tons) Year
60 20 20 2012
70 30 10 2013
20 45 70 2014
40 80 50 2015
35 40 60 2016
The component bar chart
Here the bars of each year are stacked upon one other for each year
i.e. the bar chart will look as follows
Maize
Millet
Rice
Year
Next, we enter the values on the table of values in a graphing tool
See attachment for the component bar chart
The multiple bar chart
Here the bars of each year are stacked upon one other for each year
i.e. the bar chart will look as follows
Maize Millet Rice
Year
Next, we enter the values on the table of values in a graphing tool
See attachment for the multiple bar chart
Read more about bar chart at
https://brainly.com/question/16193777
#SPJ1
Why should even small-sized companies be vigilant about security?
a.Cyberattacks are opportunistic regardless of company size.
b.Smaller companies are more vulnerable to social engineering.
c.Smaller companies are not often targets of cyberattacks.
d.Cyberattacks often come from commercial competitors.
The small-sized companies are vigilant about security because Cyberattacks are opportunistic regardless of company size.
Understanding cybersecurity means keeping it in mind when dealing with everyday events. Cybersecurity awareness includes understanding the risks associated with using the internet, checking email, and communicating online. The term "cyber awareness" describes the degree of knowledge and comprehension that end users have regarding cybersecurity best practices and the daily cyber threats that their networks or organizations must contend with.
The first step in developing a security awareness program for your firm should be measuring your current level of security awareness. Employees of an enterprise who are cyber security savvy are those who are aware of cyber dangers, understand the potential effects of a cyberattack on their company, and know the precautions to take to lower risk and stop cybercrime from invading their online workspace.
To learn more about Cyberattacks refer to:
https://brainly.com/question/27726629
#SPJ1
20 pts
Why did Frito-Lay air a commercial the night BEFORE the Super Bowl?
OA. more football fans were watching TV that night
OB. they couldn't afford to air it during the Super Bowl
people bought the product to eat during the game
O D. there are more nonsports fans than sports fans
OC.
Answer:
People bought the product to eat during the game
Explanation:
Super Bowl parties are an American staple. People buy snacks in bulk before the Super Bowl to serve at their parties. Therefore, this is the answer that makes the most sense.