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Sheridan Ltd. is a private corporation reporting under ASPE. It has recorded all necessary adjusting entries at its fiscal year end, October 31, 2021. The following information has been taken from the adjusted trial balance:

Accounts payable		$14,400		Interest expense		$4,600
Cash dividendscommon		76,000		Notes payable		74,000
Common shares		100,000		Rent expense		30,000
Depreciation expense		35,500		Retained earnings (Nov. 1, 2020)		421,000
Dividends payable		22,000		Salaries expense		191,000
Income tax expense		34,620		Service revenue		441,000
Income tax payable		2,900		Unearned revenue		25,000
Insurance expense		6,800

All accounts have normal balances and total assets equal $732,000. Sheridan has a 20% income tax rate.

Prepare a multiple-step income statement for the year.

SHERIDAN LTD. Income Statement Quarter Ended October 31, 2021October 31, 2021Year Ended October 31, 2021
		$
Retained Earnings, November 1Other ExpensesOperating ExpensesCash DividendsCommonProfit From OperationsProfit / (Loss)InvestmentsProfit Before Income TaxGross ProfitRetained Earnings, October 31:
	$
Profit Before Income TaxProfit / (Loss)Operating ExpensesProfit From OperationsInvestmentsGross ProfitRetained Earnings, November 1Retained Earnings, October 31Other ExpensesCash DividendsCommon
Profit Before Income TaxGross ProfitInvestmentsProfit / (Loss)Other ExpensesProfit From OperationsOperating ExpensesRetained Earnings, November 1Retained Earnings, October 31Cash DividendsCommon
Profit From OperationsOperating ExpensesGross ProfitRetained Earnings, October 31Retained Earnings, November 1Other ExpensesProfit / (Loss)Cash DividendsCommonInvestmentsProfit Before Income Tax		$

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List of Accounts

Prepare a statement of retained earnings for the year. (List items that increase retained earnings first.)

SHERIDAN LTD. Statement of Retained Earnings Quarter Ended October 31, 2021Year Ended October 31, 2021October 31, 2021
Profit From OperationsGross ProfitOperating ExpensesRetained Earnings, October 31Profit Before Income TaxInvestmentsOther ExpensesRetained Earnings, November 1Cash DividendsProfit / (Loss)		$
AddLess: Retained Earnings, October 31InvestmentsProfit From OperationsRetained Earnings, November 1Cash DividendsCommonGross ProfitProfit Before Income TaxProfit / (Loss)Other ExpensesOperating Expenses
AddLess: Retained Earnings, October 31Retained Earnings, November 1Cash DividendsCommonProfit From OperationsOperating ExpensesProfit / (Loss)Gross ProfitProfit Before Income TaxOther ExpensesInvestments
Profit From OperationsProfit / (Loss)Gross ProfitInvestmentsOperating ExpensesRetained Earnings, November 1Cash DividendsRetained Earnings, October 31Other ExpensesProfit Before Income Tax		$

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List of Accounts

Prepare closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Oct. 31
	(To close revenue account.)
Oct. 31
	(To close expense accounts.)
Oct. 31
	(To close Income Summary.)
Oct. 31
	(To close dividends.)

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List of Accounts

Post the closing entries to the Income Summary and Retained Earnings accounts. (Post entries in the order of Journal entry presented in the previous part.)

Income Summary
Date	Explanation	Ref.	Debit	Credit	Balance
Oct. 31	Closing entry	J1
Oct. 31	Closing entry	J1
Oct. 31	Closing entry	J1
Retained Earnings
Date	Explanation	Ref.	Debit	Credit	Balance
Oct. 31	Balance
Oct. 31	Closing entry	J1
Oct. 31	Closing entry	J1

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