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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare
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.)
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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