Sheffield Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. Date Account Titles and Explanation Debit Credit ary 2 Purchases 68110 Accounts Payable 68110 ary 26 Accounts Payable 68110 Purchase Discounts Lost 1390 Cash 69500 Trucks 50000 Notes Payable 47000 Cash 3000 Cash 88300 Discount on Notes Payable 9840 Notes Payable 98140 st 1 4 Retained Earnings 302000 Dividends Payable 302000 mber 10 Dividends Payable 302000 Cash 302000 Described below are certain transactions of Sheffield Corporation. The company uses the periodic inventory system. 1. 2. On February 2, the corporation purchased goods from Martin Company for $69,500 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $3,000 in cash and signing a one-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $88,300 from Chicago National Bank by signing a $98,140 zero-interest-bearing note due one year from May 1. On August 1, the board of directors declared a $302,000 cash dividend that was payable on September 10 to stockholders of record on August 31. 3. 4. (a) Your answer is correct