Question

Sheffield Company has a fiscal year ending on September 30. Selected data from the September 30 worksheet are presented below. 738 SHEFFIELD COMPANY Worksheet For The Month Ended September 30, 2020 Trial Balance Adjusted Trial Balance Debit Credit Debit Credit Cash 39,680 39,680 Supplies 20,880 4,514 Prepaid Insurance 31,900 4,021 Land 87,560 87,560 Equipment 127,560 127,560 Accumulated Depreciation Equipment 38,480 45.910 Accounts Payable 16,880 16,880 Unearned Service Revenue 3,280 Mortgage Payable 54,560 54,560 Common Stock 117.260 117,260 Retained Earnings, Sept. 1, 2020 2,000 2,000 Dividends 14,000 14,000 Service Revenue 284,060 286,602 Salaries and Wages Expense 108,420 108,420 Maintenance and Repairs Expense 32,780 32,780 Advertising Expense 9,400 9,400 Utilities Expenses 19,180 19,180 Property Tax Expense 18,580 21,240 Interest Expense 6,580 11,750 Totals 516,520 514,520 Insurance Expense 27,879 Supplies Expense 16,366 Interest Payable 5,170 Depreciation Expense Property Tax Payable 2,660 Totals 531,780 531,780 7,430

Prepare Adjustments, Income Statement and Balance Sheet

Answer 1

Adjustments Debit Credit Income Statement Debit Credit Calculation Adjustments Credit Debit 16,366 27,879 =20,880-4,514 =31,900-4,021 7,430 Balance Sheet Debit Credit 39,680 4,514 4,021 87,560 127,560 45,910 16,880 738 54,560 117,260 14,000 2,000 -45,910-38,480 2,542 =3,280-738 Unadjusted TB Debit Credit 39,680 20,880 31,900 87,560 127,560 38,480 16,880 3,280 54,560 117,260 14,000 2,000 284,060 108,420 32,780 9,400 19,180 18,580 6,580 516,520 516,520 Adjusted TB Debit Credit 39,680 4,514 4,021 87,560 127,560 45,910 16,880 738 54,560 117,260 14,000 2,000 286,602 108,420 32,780 9,400 19,180 21,240 11,750 2,542 Sheffield Company Account Names Cash Supplies Prepaid Insurance Land Equipment Accumulated Depreciation - Equipment Accounts Payable Unearned Service Revenue Mortgage Payable Common Stock Dividends Retained Earnings Service Revenue Salaries and wages expense Maintenance and repairs expense Advertising expense Utilities expense Property tax expense Interest expense Totals Insurance expense Supplies expense Interest Payable Depreciation expense Property tax Payable Totals Net Income Totals 286,602 =286,602-284,060 108,420 32,780 9,400 19,180 21,240 11,750 2,660 5,170 =21,240-18,580 =11,750-6,580 27,879 16,366 27,879 16,366 27,879 16,366 5,170 5,170 5,170 7,430 7,430 7,430 2,660 62,047 2,660 531,780 62,047 531,780 286,602 277,335 254,445 32,157 286,602 2,660 245,178 32,157 277,335 286,602 277,335

Sheffield Company Journal entries Date Account 30-Sep Supplies expense Supplies Credit Debit $ 16,366 $ 16,366 $ 27,879 30-Sep Insurance expense Prepaid Insurance $ 27,879 $ 7,430 30-Sep Depreciation expense Accumulated Depreciation - Equipment $ 7,430 $ 2,542 30-Sep Unearned Service Revenue Service Revenue $ 2,542 $ 5,170 30-Sep Interest expense Interest Payable $ 5,170 $ 2,660 30-Sep Property tax expense Property tax Payable $ 2,660