These items are taken from the financial statements of Sheffield Corp. at Decemb
ID: 2330344 • Letter: T
Question
These items are taken from the financial statements of Sheffield Corp. at December 31, 2017.
Buildings $ 116,380
Accounts receivable 13,860
Prepaid insurance 3,520
Cash 13,024
Equipment 90,640
Land 67,320
Insurance expense 858
Depreciation expense 5,830
Interest expense 2,860
Common stock 66,000
Retained earnings (January 1, 2017) 44,000
Accumulated depreciation—buildings 50,160
Accounts payable 10,450
Notes payable 102,960
Accumulated depreciation—equipment 20,592
Interest payable 3,960
Service revenue 16,170
14.960 of | Preparea calfed balance sheet Assume than note payablewill be pald In 2010. (istcurent assets in order of Nquidity and property plant and equipment in order of land, buildings andequipment) the Assets Cunent Assct 13,024 Accounts Recahable 13,860 TotalCarment Asscts Property, Plant and Equlpment 7,320 114380 Buldis 50 160 66,220 Less : Accumulated Depreclai 20532 TocalAatsExplanation / Answer
Answer:
Shefidan Company
Balance Sheet
Dec-31-2017
Assets
Amount ($)
Current assets
Cash
13024
Account Receivable
13860
Prepaid insurance
3520
Total Current assets (i)
30404
Property, Plant and Equipment
Building (116380-50160)
66220
Equipment (90640-20592)
70048
Land
67320
Total Property, Plant and Equipment (ii)
203588
Total assets = (i) + (ii)
233992
Liabilities
Current Liabilities
Notes payable
14960
Accounts payable
10450
Interest payable
3960
Total Current Liabilities (iii)
29370
Long term Liabilities
Notes Payable (102960-14960)
88000
Total Long term Liabilities (iv)
88000
Stockholder Equity
Common stock
66,000
Retained earnings
44,000
Net income (Note 2)
6622
Total Stockholder Equity (v)
116,622
Total liabilities = (iii) + (iv) + (v)
233,992
Working notes for the above answer:
Calculation of the net income
Service revenue
16170
Less:
Depreciation expanses
5830
Interest expanses
2860
Insurance expanses
858
Net income
6622
Shefidan Company
Balance Sheet
Dec-31-2017
Assets
Amount ($)
Current assets
Cash
13024
Account Receivable
13860
Prepaid insurance
3520
Total Current assets (i)
30404
Property, Plant and Equipment
Building (116380-50160)
66220
Equipment (90640-20592)
70048
Land
67320
Total Property, Plant and Equipment (ii)
203588
Total assets = (i) + (ii)
233992
Liabilities
Current Liabilities
Notes payable
14960
Accounts payable
10450
Interest payable
3960
Total Current Liabilities (iii)
29370
Long term Liabilities
Notes Payable (102960-14960)
88000
Total Long term Liabilities (iv)
88000
Stockholder Equity
Common stock
66,000
Retained earnings
44,000
Net income (Note 2)
6622
Total Stockholder Equity (v)
116,622
Total liabilities = (iii) + (iv) + (v)
233,992
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