The following balances were extracted from the trial balance of The Sheffield Corporation, a private corporation that follows ASPE. Sheffield has a June 30 year end. All the adjusting entries, except for income tax expense, have been recorded.

Other relevant information:

The Sheffield Corporation Adjusted Trial Balance (Partial) June 30, 2021 Debit Credit Advertising expense $26,010 Cash dividends 75,000 Common shares $126,000 Cost of goods sold 174,890 Depreciation expense 14,990 Dividends payable 30,300 Income tax expense 15,152 Income tax payable 4,070 Interest expense 2,130 Preferred shares 68,700 Rent expense 23,190 Retained earnings (beginning) 82,480 Salaries expense 170,250 Sales Revenue 500,200 Supplies expense 13,000

1. There are no dividend arrears at July 1, 2020. 2. The preferred shares are $1.00 cumulative, unlimited number authorized, 11,450 issued. 3. The common shares have an unlimited number authorized, 42,000 issued. 4. Sheffield's income tax rate is 30%.

Prepare the entry to adjust income tax expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation Debit Credit Jun. 30, 2021

Prepare a multiple-step income statement for the year ended June 30, 2021.

THE SHEFFIELD CORPORATION Income Statement Year Ended June 30, 2021 $

$

$ Prepare a statement of retained earnings at June 30, 2021. On the statement of retained earnings, report the amount of dividends for each class of share separately. (List items that increase retained earnings first.)

THE SHEFFIELD CORPORATION Statement of Retained Earnings Year ended June 30, 2021

$

:

:

$

$ Prepare the shareholders' equity section of the balance sheet as at June 30, 2021. On the statement of retained earnings, report the amount of dividends for each class of share separately.

THE SHEFFIELD CORPORATION Balance Sheet (Partial) June 30, 2021

$

$

$ Create a ledger account (in the form of a T-account) for the Income Summary account and show all the closing entries as they would have been posted. Start with the beginning balance and end with the ending balance.

Income Summary Debit Credit 2021 Beginning Balance $ $ June-30 Close June-30 Close Balance June-30 Close Ending Balance $ $