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Sheridan Ltd, started business on January 1. 2024. The following transactions occurred in 2024 : 1. On January 1, the company received $690.000 when it issued 10.000 common shares. 2. On January 1, the company borrowed $251,000 from the bank at 6% annual interest. The loan principal is due in three years. 3. On January 3, the company purchased land and a building for a total of $700,000 cash. The land was recently appraised at a fair market value of $402,000. (Note: Because the building will be ddereciated in the future and the land will not, these two assets should be recorded in separate accounts.) 4. Inventory costing $188,000 was purchased, of which $99.000 was on account. 5. Sales to customers totalled $312,560. Half of these sales were on account, and the balance were cash sales, 6. The cost of the inventory that was sold to customers in transaction 5 was $129,000. 7. Collections from customers on account totalled $133,000. 8. Payments to suppliers on account totalled $96,000. 9. During the year, employees earned wages of $97,000, of which $4,200 was unpaid at year end. 10. The interest on the bank loan was recognized and paid for the year. 11. The building was estimated to have a useful life of eight years and a residual value of $22,000. The company uses the straight-line method of depreciation. 12. The company declared dividends of $17,000 during the year, of which half were to be paid in January 2025 . 1=1

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