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Sheffield Corp.’s balance sheet at December 31, 2021, is presented below. SHEFFIELD CORP. Balance Sheet December...

Sheffield Corp.’s balance sheet at December 31, 2021, is presented below. SHEFFIELD CORP. Balance Sheet December 31, 2021 Cash $51,660 Accounts payable $53,760 Accounts receivable 95,550 Common stock ($10 par) 168,000 Allowance for doubtful accounts (3,150 ) Retained earnings 267,540 Supplies 9,240 Land 84,000 Buildings 298,200 Accumulated depreciation—buildings (46,200 ) $489,300 $489,300 During 2022, the following transactions occurred. 1. On January 1, Sheffield issued 2,520 shares of $40 par, 7% preferred stock for $103,320. 2. On January 1, Sheffield also issued 1,890 shares of the $10 par value common stock for $44,100. 3. Sheffield performed services for $672,000 on account. 4. On April 1, 2022, Sheffield collected fees of $75,600 in advance for services to be performed from April 1, 2022, to March 31, 2023. 5. Sheffield collected $579,600 from customers on account. 6. Sheffield bought $73,710 of supplies on account. 7. Sheffield paid $67,620 on accounts payable. 8. Sheffield reacquired 840 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $395,220. 10. On December 31, 2022, Sheffield declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2023. 11. An account receivable of $3,570 which originated in 2022 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $12,390 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $7,350 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $21,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.

PLEASE PROVIDE JOURNAL ENTRIES, ADJUSTING ENTRIES, ADJUSTED TRIAL BALANCE, INCOME STATEMENT, RETAINED EARNINGS, AND BALANCE SHEET. THANK YOU

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Expert Solution

1. Journal Entries -

2. Adjusting Entries -

3. Adjusting Trial Balance -

4. Income Statement -

5. Statement of Retained Earnings -

6. Balance Sheet -


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