Question

Sheridan Company’s balance sheet at December 31, 2016, is presented below.

Sheridan Company Balance Sheet December 31, 2016
Cash		$13,850			Accounts payable		$8,650
Accounts receivable		21,200			Common stock		19,000
Allowance for doubtful accounts		(810	)		Retained earnings		15,800
Inventory		9,210
		$43,450					$43,450

During January 2016, the following transactions occurred. Sheridan Company uses the perpetual inventory method.

Jan. 1		Sheridan Company accepted a 4-month, 8% note from Betheny Company in payment of Betheny’s $3,600 account.
3		Sheridan Company wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($200).
8		Sheridan Company purchased $18,420 of inventory on account.
11		Sheridan Company sold for $25,500 on account inventory that cost $16,150.
15		Sheridan Company sold inventory that cost $770 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Sheridan Company by First Bank is 3%.
17		Sheridan Company collected $21,800 from customers on account.
21		Sheridan Company paid $17,640 on accounts payable.
24		Sheridan Company received payment in full ($200) from Drake Company on the account written off on January 3.
27		Sheridan Company purchased advertising supplies for $1,330 cash.
31		Sheridan Company paid other operating expenses, $3,050.

- Prepare an adjusted trial balance at January 31, 2017. (Round answers to 0 decimal places, e.g. 1,250.)

- Prepare an income statement.

- Prepare a balance sheet as of January 31, 2017

THANK YOU!

Answer 1