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Exercise 3-15 a-c (Part Level Submission) Sheridan Company adjusts its accounts annually. The following information is...


Exercise 3-15 a-c (Part Level Submission) Sheridan Company adjusts its accounts annually. The following information is availa
(b) For each of the above transactions, prepare the adjusting journal entry that is required on December 31. (Hint: Use the a
Exercise 3-15 a-c (Part Level Submission) Sheridan Company adjusts its accounts annually. The following information is available for the year ended December 31, 2020 1. Purchased a 1-year Insurance policy on June 1 for $1,680 cash. 2. Paid $5,000 on August 31 for 5 months' rent in advance. 3. On September 4, received $3,780 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school Signed a contract for cleaning services starting December 1 for $850 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) 5 On December 5, received $1,400 in advance from a gaming club. Determined that on December 31, $600 of these games had not yet been played
(b) For each of the above transactions, prepare the adjusting journal entry that is required on December 31. (Hint: Use the account Service Revenue for item 3 and Repairs and Maintenance Expense for item 4.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Dec 31, 2020 2. Dec 31, 2020 3. Dec 31, 2020 4. Dec 31, 2020 5. Dec 31, 2020 Attempts: 0 of 3 used SAVE POR LATER SUBMIT ANSWER
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Adjusting Journal Entry
S.no Date Particulars Dr. Amt. Cr. Amt.
1 31-Dec Insurance Expenses    980 $1680 x 7/12
Prepaid Insurance 980 $1680 x 7/12
(record the insurance expenses for 7 months)
2 31-Dec Rent Expenses    4000 $5000 x 4/5
Prepaid Rent 4000 $5000 x 4/5
(record the Rent expenses upto Dec)
3 31-Dec Unearned Service Revenue    1680 $3780 x 4/9
Service Revenue 1680 $3780 x 4/9
(Record the revenue recognized for 4 months)
4 31-Dec Cleaning Expenses    850 $1700 x 1/2
Prepaid Cleaning Expenses 850 $1700 x 1/2
(record the cleaning expenses for December)
5 31-Dec Unearned Service Revenue    800 $1400- $600
Service Revenue 800 $1400- $600
(Record the revenue recognized)
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