The Sheffield Corp. is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances. All accounts balances are normal. Unadjusted Adjusted Unadjusted AdjustedAccounts Payable $25,600 $25,600 Inventory $29,500 $29,500Accounts Receivable 31,000 31,000 Notes payable 35,000 35,000Accumulated Depr.—Equipment 36,000 44,500 Prepaid Insurance 10,700 2,600Cash 26,000 26,000 Property Tax Expense 2,500Common Stock 42,400 42,400 Property Taxes Payable 2,500Cost of Goods Sold 511,000 511,000 Rent Expense 14,400 14,400Dividends 9,500 9,500 Retained Earnings 61,700 61,700Freight-Out 5,900 5,900 Salaries and Wages Expense 95,500 95,500Equipment 147,000 147,000 Sales Commissions Expense 6,500 11,000Depreciation Expense 8,500 Sales Commissions Payable 4,500Insurance Expense 8,100 Sales Returns and Allowances 7,500 7,500Interest Expense 6,000 6,000 Sales Revenue 700,000 700,000Interest Revenue 8,500 8,500 Utilities Expense 8,700 8,700Prepare a balance sheet. Notes payable are due in 2025. (List Current Assets in order of liquidity.) **Instruction for Creating a Balance Sheet:**Prepare a balance sheet. Notes payable are due in 2025. *(List Current Assets in order of liquidity.)*---**The Sheffield Corp.****Balance Sheet**Date: November 30, 2022---**Assets**- **Current Assets:** - Accounts Receivable: $31,000 - Cash: $26,000 - Inventory: $29,500 - Prepaid Insurance: $2,600- **Total Current Assets:** (Sum the values to get the total)- Additional sections and categories can be added using drop-down options as needed.*Note: Ensure all current assets are listed in order of liquidity, from most liquid (Cash) to less liquid (Prepaid Insurance).*Complete all calculations and ensure accuracy for financial reporting. **The Sheffield Corp. Financial Overview**Sheffield Corp., located in midtown Madison, is experiencing a decline in net income due to competition from suburban shopping centers. Below is the trial balance for the fiscal year ending November 30, 2022. Both unadjusted and adjusted balances are provided, indicating standard account balances.**Trial Balances:**| **Account** | **Unadjusted** | **Adjusted** ||------------------------------------|----------------|--------------|| Accounts Payable | $25,600 | $25,600 || Accounts Receivable | $31,000 | $31,000 || Accumulated Depreciation—Equipment | $36,000 | $44,500 || Cash | $26,000 | $26,000 || Common Stock | $42,400 | $42,400 || Cost of Goods Sold | $511,000 | $511,000 || Dividends | $9,500 | $9,500 || Freight-Out | $5,900 | $5,900 || Equipment | $147,000 | $147,000 || Depreciation Expense | $8,500 | $8,500 || Insurance Expense | $8,100 | **(not shown)** || Interest Expense | $6,000 | $6,000 || Interest Revenue | $8,500 | $8,500 || Inventory | $29,500 | $29,500 || Notes Payable | $35,000 | $35,000 || Prepaid Insurance | $10,700 | $2,600 || Property Tax Expense | **(not shown)** | $2,500 || Property Taxes Payable | $2,500 | $2,500 || Rent Expense | $14,400 | $14,400 || Retained Earnings | $61,700 | $61,700 || Salaries and Wages Expense | $95,500 | $95,500 || Sales Commissions Expense | $6,500 | $11,000 || Sales Commissions Payable |

Balance sheet shows the financial position of the business. It is the financial statement that…

The Sheffield Corp. is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances. All accounts balances are normal. Unadjusted Adjusted Unadjusted Adjusted Accounts Payable $25,600 $25,600 Inventory $29,500 $29,500 Accounts Receivable 31,000 31,000 Notes payable 35,000 35,000 Accumulated Depr.—Equipment 36,000 44,500 Prepaid Insurance 10,700 2,600 Cash 26,000 26,000 Property Tax Expense 2,500 Common Stock 42,400 42,400 Property Taxes Payable 2,500 Cost of Goods Sold 511,000 511,000 Rent Expense 14,400 14,400 Dividends 9,500 9,500 Retained Earnings 61,700 61,700 Freight-Out 5,900 5,900 Salaries and Wages Expense 95,500 95,500 Equipment 147,000 147,000 Sales Commissions Expense 6,500 11,000 Depreciation Expense 8,500 Sales Commissions Payable 4,500 Insurance Expense 8,100 Sales Returns and Allowances 7,500 7,500 Interest Expense 6,000 6,000 Sales Revenue 700,000 700,000 Interest Revenue 8,500 8,500 Utilities Expense 8,700 8,700 Prepare a balance sheet. Notes payable are due in 2025.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Sheffield Corp. is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances. All accounts balances are normal.

	Unadjusted	Adjusted		Unadjusted	Adjusted
Accounts Payable	$25,600	$25,600	Inventory	$29,500	$29,500
Accounts Receivable	31,000	31,000	Notes payable	35,000	35,000
Accumulated Depr.—Equipment	36,000	44,500	Prepaid Insurance	10,700	2,600
Cash	26,000	26,000	Property Tax Expense		2,500
Common Stock	42,400	42,400	Property Taxes Payable		2,500
Cost of Goods Sold	511,000	511,000	Rent Expense	14,400	14,400
Dividends	9,500	9,500	Retained Earnings	61,700	61,700
Freight-Out	5,900	5,900	Salaries and Wages Expense	95,500	95,500
Equipment	147,000	147,000	Sales Commissions Expense	6,500	11,000
Depreciation Expense		8,500	Sales Commissions Payable		4,500
Insurance Expense		8,100	Sales Returns and Allowances	7,500	7,500
Interest Expense	6,000	6,000	Sales Revenue	700,000	700,000
Interest Revenue	8,500	8,500	Utilities Expense	8,700	8,700

Prepare a balance sheet. Notes payable are due in 2025. (List Current Assets in order of liquidity.)

**The Sheffield Corp. Financial Overview**

Sheffield Corp., located in midtown Madison, is experiencing a decline in net income due to competition from suburban shopping centers. Below is the trial balance for the fiscal year ending November 30, 2022. Both unadjusted and adjusted balances are provided, indicating standard account balances.

**Trial Balances:**

| **Account** | **Unadjusted** | **Adjusted** |
|------------------------------------|----------------|--------------|
| Accounts Payable | $25,600 | $25,600 |
| Accounts Receivable | $31,000 | $31,000 |
| Accumulated Depreciation—Equipment | $36,000 | $44,500 |
| Cash | $26,000 | $26,000 |
| Common Stock | $42,400 | $42,400 |
| Cost of Goods Sold | $511,000 | $511,000 |
| Dividends | $9,500 | $9,500 |
| Freight-Out | $5,900 | $5,900 |
| Equipment | $147,000 | $147,000 |
| Depreciation Expense | $8,500 | $8,500 |
| Insurance Expense | $8,100 | **(not shown)** |
| Interest Expense | $6,000 | $6,000 |
| Interest Revenue | $8,500 | $8,500 |
| Inventory | $29,500 | $29,500 |
| Notes Payable | $35,000 | $35,000 |
| Prepaid Insurance | $10,700 | $2,600 |
| Property Tax Expense | **(not shown)** | $2,500 |
| Property Taxes Payable | $2,500 | $2,500 |
| Rent Expense | $14,400 | $14,400 |
| Retained Earnings | $61,700 | $61,700 |
| Salaries and Wages Expense | $95,500 | $95,500 |
| Sales Commissions Expense | $6,500 | $11,000 |
| Sales Commissions Payable |

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