Question

These items are taken from the financial statements of Sheffield Corp. for 2017. Retained earnings (beginning of year) Utilities expense Equipment Accounts payable Cash Salaries and wages payable Common stock Dividends Service revenue Prepaid insurance Maintenance and repairs expense Depreciation expense Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation-equipment $33,280 2,110 68,280 22,570 15,070 5,840 12,000 12,000 69,290 6,340 1,690 3,490 15,970 2,310 38,290 22,570

Answer 1

Sheffield Corp.
Balance Sheet
December 31, 2017
Assets
Current Assets:
Cash	$15,070
Accounts receivable	$15,970
Prepaid insurance	$6,340
Total current assets         [$15,070 + $15,970 + $6,340]		$37,380
Property, Plant, and Equipment:
Equipment	$68,280
Less: Accumulated depreciation - Equipment	$22,570	$45,710
Total Assets                     [$37,380 + $45,710]		$83,090
Liabilities and Shareholder’s Equity
Current Liabilities:
Accounts payable	$22,570
Salaries and Wages Payable	$5,840
Total current liabilities      [$22,570 + $5,840]		$28,410
Shareholders' Equity:
Common stock	$12,000
Retained earnings           [Refer statement of retained earnings]	$42,680
Total shareholders' equity                                      [$12,000 + $42,680]		$54,680
Total liabilities and shareholders' equity               [$28,410 + $54,680]		$83,090

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Statement of retained earnings:
Retained Earnings (Beginning of the year)	$33,280
Add: Net income    [Refer income statement]	$21,400
	$54,680
Less: Dividends	$12,000
Retained Earnings (End of the year)	$42,680

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Income Statement
Revenues:
Service revenue		$69,290
Expenses:
Utilities Expense	$2,110
Maintenance and repairs expense	$1,690
Depreciation Expense	$3,490
Insurance Expense	$2,310
Salaries and Wages Expense	$38,290
Total expenses		$47,890
Net income                 [$69,290 - $47,890]		$21,400