Sheffield Enterprises Ltd. sells a specialty part that is used in widescreen televisions and provides the ultimate in screen clarity. To promote sales of its product, Sheffield launched a program with some of its smaller customers. In exchange for making Sheffield their exclusive supplier, Sheffield guarantees these customers to their creditors so that Sheffield will assume the customers long-term debt in the event of non-payment to the creditors. In addition to charging for parts, Sheffield also charges a fee to customers who take the guarantee program. It bases the fee on the time frame that the guarantee covers, which is typically three years. In the current fiscal year, the fees collected amounted to $27,270 for the three-year coverage period. Six months before Sheffields fiscal year end, one of its customers, Hutter Corp., began to experience financial difficulties and missed two months of mortgage payments. Hutters lender then called on Sheffield to make the mortgage payments. At its fiscal year end on December 31, 2020, Sheffield had recorded a receivable of $13,635 related to the payments made by Sheffield on Hutters behalf. Hutter owes the lender an additional $27,270 at this point. The lender is thinking of putting a lien on Hutters assets that were pledged as collateral for the loans. However, the collateral involves rights to the development of new state-of-the-art three-dimensional television technology that is still unproven. Sheffield follows ASPE. (a) Prepare all required journal entries and adjusting entries on Sheffields books to recognize the transactions and events described above. (Hint: Use the accounts Service Revenue, Loss on Guarantee, and Liability for Guarantee.)