Question 1:

Question 2: Question 3

I need help with three questions

During the first month of operations, the following transactions occurred for Sheridan Inc.: Apr. 1 Invested cash of $8,000 and equipment of $6,500 in the company in exchange for common shares. 1 Hired a secretary-receptionist at a monthly salary of $1,800. 2 Paid office rent for the month, $900. 3 Purchased architectural supplies on account from Halo Ltd., $1,800. 10 Completed blueprints on a carport and billed client $1,300. 13 Received $800 cash advance from a client for the design of a new home. 20 Received $2,000 for services performed for a client. 21 Received $600 from client in partial payment for work completed and billed on April 10. 23 Received April's telephone bill for $135; due May 15. (Hint: Use the Utilities Expense account for telephone services.) Declared and paid $120 of dividends to shareholders. 25 27 Paid 50% ($900) of the amount owed to Halo Ltd. on account. (see April 3 transaction) 30 Paid secretary-receptionist for the month, $1,800. 30 Paid monthly income tax instalment, $100. (a) Journalize the transactions. (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. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Date Credit (To record investment) (Hired a secretary-receptionist) [] (To record salary) (To record salary) (To record payment of income tax) eTextbook and Media List of Accounts Current Attempt in Progress Which of the following statements is true? O The income statement reports the success or failure of the company's operations at a point in time. On an income statement, revenues are deducted from expenses to determine income before income tax. On the income statement, income tax expense is usually shown separately. O Investors are interested in a company's future income because they provide information that explains past income. The following is the unadjusted trial balance for Wildhorse Lodge Ltd. at its year end, May 31, 2021. The company adjusts its accounts monthly. Debit Credit Cash $5,789 Accounts receivable 11,980 Supplies 4,720 Prepaid insurance 4,800 Land 113,840 Buildings 151,200 Accumulated depreciation-building Furniture 34,200 Accumulated depreciation-furniture Accounts payable Deferred revenue Mortgage payable, due 2024 $ 23,600 19,500 8,030 17,500 120,000 Retained earnings Dividends declared Rent income Salaries expense Utilities expense Depreciation expense Interest expense Insurance expense Advertising expense Income tax expense Additional information: 43,880 200,139 2,160 104,140 21,800 13,690 9,410 6,720 1,050 7,150 $492,649 $492,649 1. An annual insurance policy was purchased for the first time on October 1, 2020, for $11,520 cash. 2. A count of supplies shows $1,474 of supplies on hand on May 31. 3. The buildings have an estimated useful life of 20 years and straight-line depreciation is applied. 4. The furniture has an estimated useful life of five years and straight-line depreciation is applied. 5. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these bookings indicates that 175 deposits were received and credited to Deferred Revenue. By May 31, 25 of the deposits were earned. 6. On May 25, a local business contracted with Wildhorse Lodge to rent one of its housekeeping units for four months, starting June 1, at a rate of $3,036 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Income. 7. On May 31, Wildhorse Lodge has earned $1,925 of rent income from customers who are currently staying at the lodge. The customers will pay the amount owing only when they check out in early June. 8. Salaries of $1,584 are unpaid at May 31. Interest on the mortgage payable is $700 for the month of May and due June 1. The May utility bill of $2,116 has not yet been recorded or paid. Additional income tax is estimated to be $1,010. 10. 11. Prepare adjusting journal entries for the month. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No Date Account Titles and Explanation Debit Credit 1. May 31 Insurance Expense Prepaid Insurance 2. 31 3. 31 4. 31 Depreciation Expense Supplies Expense Supplies Depreciation Expense Accumulated Depreciation - Buildings 960 3,246 630 570 960 3,246 630 5. 31 6. 31 31 31 31 7. 8. 9. Accumulated Depreciation - Equipment Deferred Revenue Rent Income Rent Income Deferred Revenue Accounts Receivable Rent Income Salaries Expense Salaries Payable Interest Expense Interest Payable 2,500 3,036 1,925 1,584 700 570 2,500 3,036 1,925 1,584 700 9. 10. 11. 31 Interest Expense Interest Payable 31 Utilities Expense Cash 31 In me Tax Expense Income Tax Payable 700 2,116 1,010 700 2,116 1,010