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.Journalize the closing entries that are necessary. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 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 8,700 **Journalizing Closing Entries**In accounting, closing entries are necessary to balance the accounts at the end of a reporting period. This example provides a template for recording closing entries as of November 30. The process involves moving temporary account balances (revenues, expenses, etc.) to permanent accounts (usually retained earnings).### Template Format#### Heading:- **Instruction**: Journalize the closing entries that are necessary. *(Note: Credit account titles are automatically indented when the amount is entered. Do not indent manually.)*#### Table Columns:1. **Date**: When the entry is recorded.2. **Account Titles and Explanation**: Description of the accounts affected, including an indication of the purpose (e.g., to close accounts with credit balances).3. **Debit**: The debit amounts for each transaction.4. **Credit**: The credit amounts for each transaction.#### Entries for November 30:- **Account Titles**: Space for listing accounts affected by the closing entries.- **Debit / Credit Columns**: Corresponding amounts in the debit or credit columns.This table allows users to systematically record account closures and ensure that temporary accounts are prepared for the next accounting cycle. Proper indentation for credit accounts is automatically done to maintain clarity and accuracy of the entries. **The Sheffield Corp. Financial Overview**The Sheffield Corp., situated in midtown Madison, has experienced a decline in net income in recent years due to the competition from suburban shopping centers. As of the fiscal year ending on November 30, 2022, the company provided the trial balances in their financial statement, showing both unadjusted and adjusted accounts. All balances are normal.**Trial Balances***Accounts:*- **Accounts Payable**: - Unadjusted: $25,600 - Adjusted: $25,600- **Accounts Receivable**: - Unadjusted: $31,000 - Adjusted: $31,000- **Accumulated Depreciation—Equipment**: - Unadjusted: $36,000 - Adjusted: $44,500- **Cash**: - Unadjusted: $26,000 - Adjusted: $26,000- **Common Stock**: - Unadjusted: $42,400 - Adjusted: $42,400- **Cost of Goods Sold**: - Unadjusted: $511,000 - Adjusted: $511,000- **Dividends**: - Unadjusted: $9,500 - Adjusted: $9,500- **Freight-Out**: - Unadjusted: $5,900 - Adjusted: $5,900- **Equipment**: - Unadjusted: $147,000 - Adjusted: $147,000- **Depreciation Expense**: - Unadjusted: $8,500 - Adjusted: $8,500- **Insurance Expense**: - Unadjusted: $8,100 - Adjusted: $8,100- **Interest Expense**: - Unadjusted: $6,000 - Adjusted: $6,000- **Interest Revenue**: - Unadjusted: $8,500 - Adjusted: $8,500- **Inventory**: - Unadjusted: $29,500 - Adjusted: $29,500- **Notes Payable**: - Unadjust

Adjusted trial balance: It is worksheet which shows all the accounts an organization has like…

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. Journalize the closing entries that are necessary. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q