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Sheridan’s Home Renovations was started in 2008 by Jim Sheridan. Jim operates the business from an...

Sheridan’s Home Renovations was started in 2008 by Jim Sheridan. Jim operates the business from an office in his home. Listed below, in alphabetical order, are the company’s assets and liabilities as at December 31, 2021, and the revenues, expenses, and drawings for the year ended December 31, 2021:

Accounts payable

$7,506 Operating expenses

$3,569

Accounts receivable

10,126 Prepaid insurance

1,578

Cash

8,757 Salaries expense

88,164

Equipment

28,753 Service revenue

158,710

Insurance expense

3,217 Supplies 447

Interest expense

1,141 Supplies expense 20,721

J. Sheridan, drawings

44,172 Unearned revenue

15,486

Notes payable

30,741 Vehicles 41,300

Jim's capital at the beginning of 2021 was $39,502. He made no investments during the year.

Expert Solution

Income statement is calculated for Net Income because that is to be transferred to Capital account of J.sheridan Account

ekkarill92 answered 2 years ago

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