[ Your answer is partially correct. Try again. These items are taken from the fi

Question

[ Your answer is partially correct. Try again. These items are taken from the financial statements of Sheffield Corp. at December 31, 2017. $116,380 13,860 3,520 13,024 90,640 67,320 858 5,830 2,860 66,000 44,000 50,160 10,450 102,960 20,592 3,960 16,170 Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1, 2017) Accumulated depreciation-buildings Accounts payable Notes payable Accumulated depreciation-equipment Interest payable Service revenue Prepare a classified balance sheet. Assume that $14,960 of the note payable will be paid in 2018. (List current a Sheffield Corp. Balance Sheet ecember Assets Current Asse s130 38 352 Accounts Recelvable Prepaid insurance Prepesty Plant and Equipment Equipment 90640

Explanation / Answer

Note : Since Retained earning is given as of January 1, 2017, we have to prepare Income statement with the help of items given in the trail balance. We can prepare Balance sheet only after that. Income statement at the year ended December 31, 2017 Service Revenue 16170 Less : Expenses Insurance expense 858 Depreciation expense 5830 Interest expense 2860 Total expenses 9548 Net Income 6622 Statement of retained earning Retained earning January 1, 2017 44000 Add : Net Income for the year 6622 Retained earning December 31, 2017 50622 Balance sheet as on December 31, 2017 Asset Currenet asset Cash 13024 Accounts receivable 13860 Prepaid Insurance 3520 Total current asset 30404 Land 67320 Building 116380 Less : accumulated Depreciation 50160 66220 Property, Plant and equipment 90640 Less : accumulated Depreciation 20592 70048 Total asset 233992 Liabilities and shareholder's equity Current liabilities Accounts Payable 10450 Notes Payable 14960 Interest Payable 3960 Total current liabilities 29370 Non-current Liabilities Notes Payable 88000 Total Liabilities 117370 Shareholder's Equity Common stock 66000 Retained earning(from Note above) 50622 Total shareholder's equity 116622 Total Liabilities and shareholder's equity 233992

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