Question

Sheffield Company's trial balance at December 31, 2019, is presented below. All 2019 transactions have been recorded except for the items described following the trial balance Debit Credit $27,000 36,500 8,200 Cash Accounts Recelvable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patents Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreclation Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Notes Payable (due in 2020) Interest Payable Notes Payable (due after 2020) Common Stock Retained Earnings Dividends Sales Revenu Interest Revenue Rent Revenue Gain on Disposal of Plant Assets Bad Debts Expense Cost of Goods Sold Depreciation Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 36,300 3,900 20,200 156,000 66,000 9,800 $600 52,000 26,400 27,200 6,300 12,000 35,000 38,000 70,600 13,000 904,000 -0 0 634,000 -0 -0 61,200 100,000 $1,172,100 $1,172,100 Unrecorded transactions 1. On May 1, 2019, Sheffield purchased equipment for $17,400 plus sales taxes of $800 (all paid in cash) 2. On July 1, 2019, Sheffield sold for $3,500 equipment which originally cost $5,200. Accumulated depreciation on this equipment at January 1, 2019, was S1,800; 2019 depreciation prior to the sale of the equipment was $500 3. On December 31, 2019, Sheffield sold on account丰5,300 of inventory that cost $3,300 4. Sheffield estimates that uncollectible accounts recelvable at year-end is $3,800 5. The note receivable is a one-year, 8% note dated April 1, 2019. No interest has been recorded 6. The balance in prepaid insurance represents payment of a $3,900 6-month premium on September 1, 2019 7. The buildings are being depreciated using the straight-line method over 30 years. The salvage value is $27,000 8. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 9. The equipment purchased on May 1, 2019, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,600 10. The patent was acquired on נanuary 1, 2019, and has a useful life of 10 years from that date. 11. Unpaid salaries and wages at December 31, 2019, total $2,100 12. The unearned rent revenue af $6,300 was received on December 1, 2019, for 3 months' rent. 13. Both the short-term and long-term notes payable are dated January 1, 2019, and carry a g% interest rate. All interest is payable in the next 12 months. No. Account Titles and Explanatlon Deblt Credlt 2. (To record depreciation expense.) (To record sale of equipment.) 3. (To record sales revenue.) (To record cost of goods sold.) 5. 6. 8. 10. 12. 13.

Answer 1

	Account Titles	Debit	Credit
		$	$
1.	Equipment	18,200
	Cash		18,200
	(To record purchase of equipment)
2.	Depreciation Expense	500
	Accumulated Depreciation - Equipment		500
	(To record Depreciation Expense )
	Cash	3,500
	Accumulated Depreciation - Equipment [1800+500]	2,300
	Equipment		5,200
	Gain on Disposal of Plant Assets		600
	(To record sale of equipment )
3.	Accounts Receivable	5300
	Sales revenue		5300
	(To record sales revenue)
	Cost of Goods Sold	3,300
	Inventory		3,300
	(To record cost of goods sold )
4.	Bad Debt Expense	3,800
	Allowance for Doubtful Accounts		3,800
5.	Interest Receivable	492
	Interest Revenue [8200*0.08*9/12]		492
	(To record interest on notes receivable)
6.	Insurance Expense	2,600
	Prepaid Insurance		2,600
7.	Depreciation Expense [ (156000 - 27000)/30]	4,300
	Accumulated Depreciation - Buildings		4,300
	(To record Depreciation Expense )
8.	Depreciation Expense [(66000 - 5200)-6080] / 5	10944
	Accumulated Depreciation - Equipment		10944
9.	Depreciation Expense[(18200-2600)/5 * 8/12]	2080
	Accumulated Depreciation - Equipment		2080
10	Amortization Expense [9800/10]	980
	Patents		980
11	Salaries and Wages Expense	2100
	Salaries and Wages Payable		2100
12.	Unearned Rent Revenue ( $ 6,300 / 3)	2,100
	Rent Revenue		2,100
13.	Interest Expense ( (12000+35000) * 9%)	4230
	Interest Payable		4230