Reference no: EM133122687

Questions -

Q1: Sheridan Services Company records adjusting entries on an annual basis. The following information is available to be used in recording adjusting entries for the year ended December 31, 2021.

1. Prepaid insurance totalling $280 has expired.

2. Supplies of $280 have been used.

3. Annual depreciation on equipment is $1,130.

4. Services related to unearned revenue of $180 were performed.

5. Salaries of $730 are unpaid.

6. Utility expenses for 2021 of $180 are unrecorded and unpaid.

7. Services provided but not collected in cash or recorded total $930.

8. Interest of $105 on a note payable has accrued.

For each adjustment, prepare a basic analysis, a debit-credit analysis. Use the following format, in which the first one has been done:

Q2: Blackice Coffeeshop began operations April 1. At April 30, the trial balance shows the following balances for selected accounts:

Prepaid Insurance $3,624

Equipment 26,400

Notes Payable 19,200

Unearned Revenue 4,090

Service Revenue 1,580

Analysis reveals the following additional data.

1. Prepaid insurance is the purchase cost of a 2-year insurance policy, effective April 1.

2. Depreciation on the equipment is $530 per month.

3. The note payable is dated April 1. It is a 6-month, 6% note.

4. Services delivered to customers but not recorded at April 30 totalled $1,480.

5. Provided $670 of services to customers who had paid at the beginning of the month.

Prepare the adjusting entries for the month of April.