The accounts below appear in the ledger of Sheridan Company. Retained Earnings Dr. Cr. Bal. Jan. 1,
Question:
The accounts below appear in the ledger of Sheridan Company.
Retained Earnings | Dr. | Cr. | Bal. | |||||
Jan. 1, 2020 | Credit Balance | $41,700 | ||||||
Aug. 15 | Dividends (cash) | $14,800 | 26,900 | |||||
Dec. 31 | Net Income for 2020 | $39,900 | 66,800 | |||||
Equipment | Dr. | Cr. | Bal. | |||||
Jan. 1, 2020 | Debit Balance | $139,900 | ||||||
Aug. 3 | Purchase of Equipment | $61,700 | 201,600 | |||||
Sept. 10 | Cost of Equipment Constructed | 48,000 | 249,600 | |||||
Nov. 15 | Equipment Sold | $56,100 | 193,500 | |||||
Accumulated Depreciation—Equipment | Dr. | Cr. | Bal. | |||||
Jan. 1, 2020 | Credit Balance | $83,700 | ||||||
Apr. 8 | Major Repairs | $21,000 | 62,700 | |||||
Nov. 15 | Accum. Depreciation on Equipment Sold | 25,000 | 37,700 | |||||
Dec. 31 | Depreciation for 2020 | $16,900 | 54,600 |
Prepare entries in journal form for all adjustments that should be made on a worksheet for a statement of cash flows. The loss on sale of equipment (November 15) was $5,900. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Account titles are Accumulated Depreciation—EquipmentEquipment, Investing—Cash Dividends, Investing—Construction of Equipment, Investing—Depreciation Expense, Investing—Major Repairs to Equipment, Investing—Loss on Sale of Equipment, Investing—Net Income, Investing—Purchase of Equipment, Investing—Sale of Equipment, Financing—Cash Dividends, Financing—Construction of Equipment, Financing—Depreciation Expense, Financing—Extraordinary Repairs to Equipment, Financing—Loss on Sale of Equipment, Financing—Net Income, Financing—Purchase of Equipment, Financing—Sale of Equipment, Operating—Cash Dividends, Operating—Construction of Equipment, Operating—Depreciation Expense, Operating—Extraordinary Repairs to Equipment, Operating—Loss on Sale of Equipment, Operating—Net Income, Operating—Purchase of Equipment, Operating—Sale of Equipment, Retained Earnings
Account Titles and Explanation | Debit | Credit |
(To record cash dividends.) | ||
(To record net income.) | ||
(To record depreciation expense.) | ||
(To record new Equipment.) | ||
(To record repairs.) | ||
(To record sale of Equipment.) |
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty