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 Income Tax Expense Insurance Expense 0 0 0 Interest Expense 0 Other Operating Expenses 56,100 Amortization Expense 0 Salaries and Wages Expense Total 105,000 $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 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. ate Account Titles and Explanation Debit 2 2 Equipment Cash Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense on equipment.) Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal of Plant Assets (To record sale of equipment.) 18400 775 3600 2475 Credit 18400 775 4700 1375 15 23 Accounts Receivable Sales Revenue (To record sales revenue.) Cost of Goods Sold Inventory (To record cost of goods sold.) Salaries and Wages Expense Cash 5100 3400 7300 5100 3400 7300 31 1. Bad Debt Expense Allowance for Doubtful Accounts 2. Interest Receivable Interest Revenue 3. Insurance Expense Prepaid Insurance 4. Depreciation Expense Accumulated Depreciation-Buildings 5. Depreciation Expense Accumulated Depreciation-Equipment 3800 582 2400 3700 9594 3800 582 2400 3700 9594 6. Depreciation Expense Accumulated Depreciation-Equipment 7. Amortization Expense Patents 8. Salaries and Wages Expense Salaries and Wages Payable 9. Interest Expense Interest Payable 10. Income Tax Expense Income Taxes Payable 280 900 2200 4410 14000 280 900 2200 4410 14000 Cash Accounts Receivable Notes Receivable Interest Receivable Inventory SHEFFIELD CORP. Adjusted Trial Balance December 31, 2022 A Debit 400 9700 582 31300 Prepaid Insurance 1200 Land Buildings Equipment Patents Allowance for Doubtful Accounts 19000 141000 71700 A Credit 4300 Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Notes Payable Income Taxes Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Sales Revenue Interest Revenue 50700 31374 24900 2200 14000 4410 49000 Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Other Operating Expenses Salaries and Wages Expense Totals A LA