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During 2025, the following transactions occurred. On January 1, Sheffield issued 2.520 shares of $40 par, 7% preferred stock for $103,320. On January 1, Sheffield also issued 1,890 shares of the $10 par value common stock for $44,100. Sheffield performed services for $672,000 on account. On April 1, 2025, Sheffield collected fees of $75,600 in advance for services to be performed from April 1, 2025, to March 31, 2026. Sheffield collected $579,600 from customers on account. Sheffield bought $73,710 of supplies on account. Sheffield paid $67,620 on accounts payable. Sheffield reacquired 840 shares of its common stock on June 1 for $28 per share. Paid other operating expenses of $395,220. 1. 2 3. 4. 5. 6. 7. 8. 9. 10. 11. Adjustment data: 1. 2. 3. 4. On December 31, 2025, Sheffield declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. An account receivable of $3,570 which originated in 2024 is written off as uncollectible. 5. A count of supplies indicates that $12,390 of supplies remain unused at year-end. Recorded revenue from item 4 above. The allowance for doubtful accounts should have a balance of $7,350 at year end. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $21,000. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

During 2025, the following transactions occurred. On January 1, Sheffield issued 2.520 shares of $40 par, 7% preferred stock for $103,320. On January 1, Sheffield also issued 1,890 shares of the $10 par value common stock for $44,100. Sheffield performed services for $672,000 on account. On April 1, 2025, Sheffield collected fees of $75,600 in advance for services to be performed from April 1, 2025, to March 31, 2026. Sheffield collected $579,600 from customers on account. Sheffield bought $73,710 of supplies on account. Sheffield paid $67,620 on accounts payable. Sheffield reacquired 840 shares of its common stock on June 1 for $28 per share. Paid other operating expenses of $395,220. 1. 2 3. 4. 5. 6. 7. 8. 9. 10. 11. Adjustment data: 1. 2. 3. 4. On December 31, 2025, Sheffield declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. An account receivable of $3,570 which originated in 2024 is written off as uncollectible. 5. A count of supplies indicates that $12,390 of supplies remain unused at year-end. Recorded revenue from item 4 above. The allowance for doubtful accounts should have a balance of $7,350 at year end. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $21,000. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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Prepare journal entries and adjusting entries for the following transactions. Please show your work. 

 

During 2025, the following transactions occurred. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Adjustment data: 1. 2. 3. 4. On January 1, Sheffield issued 2,520 shares of $40 par, 7% preferred stock for $103,320. On January 1, Sheffield also issued 1,890 shares of the $10 par value common stock for $44,100. Sheffield performed services for $672,000 on account. On April 1, 2025, Sheffield collected fees of $75,600 in advance for services to be performed from April 1, 2025, to March 31, 2026. Sheffield collected $579,600 from customers on account. Sheffield bought $73,710 of supplies on account. Sheffield paid $67,620 on accounts payable. Sheffield reacquired 840 shares of its common stock on June 1 for $28 per share. Paid other operating expenses of $395,220. On December 31, 2025, Sheffield declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. An account receivable of $3,570 which originated in 2024 is written off as uncollectible. 5. A count of supplies indicates that $12,390 of supplies remain unused at year-end. Recorded revenue from item 4 above. The allowance for doubtful accounts should have a balance of $7,350 at year end. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $21,000. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)
Transcribed Image Text:During 2025, the following transactions occurred. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Adjustment data: 1. 2. 3. 4. On January 1, Sheffield issued 2,520 shares of $40 par, 7% preferred stock for $103,320. On January 1, Sheffield also issued 1,890 shares of the $10 par value common stock for $44,100. Sheffield performed services for $672,000 on account. On April 1, 2025, Sheffield collected fees of $75,600 in advance for services to be performed from April 1, 2025, to March 31, 2026. Sheffield collected $579,600 from customers on account. Sheffield bought $73,710 of supplies on account. Sheffield paid $67,620 on accounts payable. Sheffield reacquired 840 shares of its common stock on June 1 for $28 per share. Paid other operating expenses of $395,220. On December 31, 2025, Sheffield declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. An account receivable of $3,570 which originated in 2024 is written off as uncollectible. 5. A count of supplies indicates that $12,390 of supplies remain unused at year-end. Recorded revenue from item 4 above. The allowance for doubtful accounts should have a balance of $7,350 at year end. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $21,000. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)
Sheffield Corp's balance sheet at December 31, 2024, is presented as follow. SHEFFIELD CORP. Balance Sheet December 31, 2024 $51,660 Cash Accounts receivable Allowance for doubtful accounts Supplies Land Buildings Accumulated depreciation-buildings 95,550 (3,150) 9,240 84,000 298,200 (46,200) $489,300 Accounts payable Common stock ($10 par) Retained earnings $53,760 168,000 267,540 $489,300
Transcribed Image Text:Sheffield Corp's balance sheet at December 31, 2024, is presented as follow. SHEFFIELD CORP. Balance Sheet December 31, 2024 $51,660 Cash Accounts receivable Allowance for doubtful accounts Supplies Land Buildings Accumulated depreciation-buildings 95,550 (3,150) 9,240 84,000 298,200 (46,200) $489,300 Accounts payable Common stock ($10 par) Retained earnings $53,760 168,000 267,540 $489,300
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