Question

Sheridan Corporation had the following transactions. 1. Sold land (cost $11,300) for $14,300. 2. Issued common stock at par for $20,000. 3. Recorded depreciation on buildings for $16,300. 4. Paid salaries of $8,300. 5. Issued 1,200 shares of $1 par value common stock for equipment worth $9,600. 6. Sold equipment (cost $9,200, accumulated depreciation $6,440) for $1,104.

(a) For each transaction above, prepare the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Transaction Account Titles and Explanation Debit Credit 1. Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount 2. Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount 3. Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount 4. Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount 5. Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount 6. Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount Enter an account title to record NSF check on January 31 Enter a debit amount Enter a credit amount SHOW LIST OF ACCOUNTS

For each transaction above, (b) indicate how it would affect the statement of cash flows using the indirect method. (Do not leave any answer field blank. Enter 0 for amounts. Select "Not Reported" if it does not belong to any section.) 1. Cash receipt ReportedNot reported Operating sectionFinancing sectionInvesting and Financing sectionNot ApplicableInvesting section Gain on disposal of plant assets Not reportedReported Investing sectionInvesting and Financing sectionFinancing sectionOperating sectionNot Applicable 2. Cash receipt ReportedNot reported Financing sectionInvesting sectionOperating sectionNot ApplicableInvesting and Financing section 3. Depreciation expense ReportedNot reported Investing and Financing sectionFinancing sectionInvesting sectionOperating sectionNot Applicable 4. Salaries and wages expense ReportedNot reported Investing sectionNot ApplicableInvesting and Financing sectionOperating sectionFinancing section 5. Common stock for equipment ReportedNot reported Investing and Financing sectionInvesting sectionOperating sectionNot ApplicableFinancing section 6. Cash receipt ReportedNot reported Financing sectionOperating sectionNot ApplicableInvesting and Financing sectionInvesting section Loss on disposal of plant assets ReportedNot reported Financing sectionOperating sectionNot ApplicableInvesting sectionInvesting and Financing section

Answer 1

	TR	Account titles and Explanations						Debit	Credit
	1)	cash						14,300
		gain on disposal							3,000
		land							11,300
	2)	Cash						20,000
		common stock							20,000
	3)	Deperciation expense						16,300
		accumulated depreciation-buildings							16,300
	4)	Salaries expense						8,300
		cash							8,300
	5)	Equipment						9,600
		common stock							1,200
		paid in capital in excess of par -CS							8400
	6)	cash						1,104
		Accumulated depreciation-equipment						6,440
		loss on disposal						1,656
		Equipment							9,200
	1)	Cash receipt			14,300	Reported		investing section
		Gain on disposal of plant assets			-3000	Reported		operating section
	2)	Cash receipt			20,000	Reported		Financing section
	3)	Depreciation expense			16,300	Reported		Operating section
	4)	Salaries and wage expense			0	not reported		not applicable
	5)	Common stock for equipment			0	not reported		not applicable		(non cash financing and
										investing section)
	6)	Cash receipt			1104	Reported		investing section
		loss on disposal of plant assets			1,656	Reported		operating section
		for 5 the transaction is reported at the end of statement of cash flow as non cash
		investing and financing if investing and financing means here to that then
		choose that option)