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3 years ago

Sheridan Company, a computer services company, entered into these transactions during May 2017, its first month of operations.

Business

1 answer:

andreyandreev [35.5K]3 years ago

5 0

Answer:

Sheridan Company

NUMBER ASSET LIABILITY EQUITY EXPLANATION

$ $ $

1 35,000 35,000 The issue of stock for cash would involve increase in asset and an increase in equity component of the company.

2 32,900 32,900 The purchase of equipment on credit would increase the asset of the company and also increase the liability as it was purchased on account.

3 -3600 -3600 Payment of rent which is an expense would involve an outflow of cash thus reducing the cash component in asset and reduce the retained earnings of the company that would be recorded under stockholders' equity

4 18100 18100 The inflow from computer services is a revenue to the company and under asset would increase the account receivable while on the equity side it would also increase the retained earnings of the company

5 5900 5900 The inflow from computer services is a revenue to the company and under asset would increase the cash component since cash was paid while on the equity side it would also increase the retained earnings of the company

6 -7100 -7100 Payment for energy which is an expense would involve an outflow of cash thus reducing the cash component in asset and reduce the retained earnings of the company that would be recorded under stockholders' equity

7 -32,900 -32,900 The payment for the equipment would reduce the cash component and also reduce the liability component as the debt would have cleared off

8 3600 -3600 Advertising rent incurred on account would increase the liability component and also reduce the retained earnings under shareholders equity

9 11900 -11900 Being increase in cash from payment of services and reducing the liability owed

Explanation:

Assets = Cash, Equipment, Account receivable

Liability = Account payable

Stockholders' equity = common stock, retained earnings (revenue, expenses)

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4 years ago

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Nov. 5 Purchased 850 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November

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Answer: Please see explanation column for answer

Explanation: A perpetual inventory system maintains inventory balances ensuring that records are continually made immediately when purchases or sale are made together with any returns which are recorded in inventory accounts.

To record purchase of merchandise

Date Account Debit Credit

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3 years ago

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Answer:

Instructions are below.

Explanation:

Giving the following information:

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