Question 1 of 1

Question 1 ofl View Policies Current Attempt in Progress Sheffield Company's balance sheet at December 31, 2021, is presented below. SHEFFIELD COMPANY Balance Sheet December 31, 2021 Cash Inventory Prepaid Insurance Equipment $37,800 38,745 7,560 47,880 $131,985 Accounts Payable Interest Payable Notes Payable Owner's Capital $17,325 315 63,000 51,345 $131,985 During January 2022, the following transactions occurred. (Sheffield Company uses the perpetual inventory system.) 2. 3. 4. Sheffield paid $315 interest on the note payable on January 1, 2022. The note is due December 31, 2023. Sheffield purchased $328, 986 of inventory on account. Sheffield sold for $554,400 cash, inventory which cost $333,900. Sheffield also collected $36,036 in sales taxes. Sheffield paid $289,800 in accounts payable.