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Sheffield Corp.'s unadjusted trial balance at December 1, 2022, is presented below. Debit Credit Cash $22,500 Accounts Receivable 39,300 Notes Receivable 9,700 Interest Receivable

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Sheffield Corp.'s unadjusted trial balance at December 1, 2022, is presented below. Debit Credit Cash $22,500 Accounts Receivable 39,300 Notes Receivable 9,700 Interest Receivable 0 Inventory 34,700 Prepaid Insurance 3,600 Land 19,000 Buildings 141,000 Equipment 58,000 Patent 8,100 Allowance for Doubtful Accounts Accumulated Depreciation-Buildings $500 47,000 Accumulated Depreciation-Equipment 23,200 Accounts Payable 24,900 Salaries and Wages Payable 0 Notes Payable (due April 30, 2023) 10,900 Income Taxes Payable 0 Interest Payable 0 Notes Payable (due in 2028) Common Stock Retained Earnings Dividends 33,200 49,000 66,700 11,400 Sales Revenue 968,000 Interest Revenue Gain on Disposal of Plant Assets Bad Debt Expense 0 0 0 Cost of Goods Sold 715,000 Depreciation Expense 0 Income Tax Expense Insurance Expense Interest Expense 0 0 0 Other Operating Expenses 56,100 Amortization Expense Salaries and Wages Expense 105,000 Total $1,223,400 $1,223,400 The following transactions occurred during December. Dec. 2 Purchased equipment for $17,600, plus sales taxes of $800 (paid in cash). 2 Sheffield sold for $3,600 equipment which originally cost $4,700. Accumulated depreciation on this equipment at January 1, 2022, was $1,700; 2022 depreciation prior to the sale of equipment was $775. 15 Sheffield sold for $5,100 on account inventory that cost $3,400. 23 23 Salaries and wages of $7,300 were paid for December. Adjustment data: 1. Sheffield estimates that uncollectible accounts receivable at year-end are $4,300. 2. The note receivable is a 1-year, 8% note dated April 1, 2022. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2022. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,000. 5. 6. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. The equipment purchased on December 2, 2022, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,600. 7. The patent was acquired on January 1, 2022, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2022, total $2,200. 9. 10 10 Both the short-term and long-term notes payable are dated January 1, 2022, and carry a 10% interest rate. All interest is payable in the next 12 months. Income tax expense was $14,000. It was unpaid at December 31. Date Account Titles and Explanation Debit Credit (To record depreciation expense on equipment.) (To record sale of equipment.) (To record sales revenue.) (To record cost of goods sold.) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

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