Accounting Cycle Review 9 a-b, c1-c2, d Hassellhouf Companys 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 Cash $28,400 Accounts Receivable 38,200 Notes Receivable 10,400 Interest Receivable 0 Inventory 35,000 Prepaid Insurance 3,600 Land 19,200 Buildings 153,000 Equipment 59,000 Patents 9,200 Allowance for Doubtful Accounts $500 Accumulated DepreciationBuildings 51,000 Accumulated DepreciationEquipment 23,600 Accounts Payable 27,500 Salaries and Wages Payable 0 Unearned Rent Revenue 6,000 Notes Payable (due in 2020) 12,000 Interest Payable 0 Notes Payable (due after 2020) 31,000 Common Stock 49,000 Retained Earnings 70,600 Dividends 12,100 Sales Revenue 906,400 Interest Revenue 0 Rent Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debts Expense 0 Cost of Goods Sold 638,000 Depreciation Expense 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 61,500 Amortization Expense 0 Salaries and Wages Expense 110,000 Total $1,177,600 $1,177,600 Unrecorded transactions: 1. On May 1, 2019, Hassellhouf purchased equipment for $21,000 plus sales taxes of $1,800 (all paid in cash). 2. On July 1, 2019, Hassellhouf sold for $3,500 equipment, which originally cost $5,100. Accumulated depreciation on this equipment on January 1, 2019, was $2,000; 2019 depreciation before the equipment's sale was $400. 3. On December 31, 2019, Hassellhouf sold on account $9,100 of inventory that cost $6,370. 4. Hassellhouf estimates that uncollectible accounts receivable at year-end is $4,200. 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 a $3,600 6-month premium payment on September 1, 2019. 7. The buildings are being depreciated using the straight-line method for over 30 years. The salvage value is $30,600. 8. The equipment owned before this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of the 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 $1,800. 10. The patent was acquired on January 1, 2019, and has a useful life of 10 years from that date. 11. Unpaid salaries and wages on December 31, 2019, a total of $5,600. 12. The unearned rent revenue of $6,000 was received on December 1, 2019, for 3 months rent. 13. The short-term and long-term notes payable are dated January 1, 2019, and carry a 9% interest rate. All interest is payable in the next 12 months. Prepare journal entries for the transactions listed above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. (To record depreciation expense.) (To record sale of equipment.) 3. (To record sales revenue.) (To record cost of goods sold.) 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Prepare an updated December 31, 2019, trial balance. (Combine the amounts of current and non-current portion of Notes Payable. Do not record separately.) HASSELLHOUF COMPANY Trial Balance December 31, 2019, Debit Credit $ $ Total $ $ Prepare a 2019 income statement. HASSELLHOUF COMPANY Income Statement $ $ $ Prepare a 2019 retained earnings statement. (List items that increase retained earnings first.) HASSELLHOUF COMPANY Retained Earnings Statement $:: $ Prepare a December 31, 2019, classified balance sheet. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in the order of Land, Buildings and Equipment.) HASSELLHOUF COMPANY Balance Sheet Assets $ $ $ : : $ Liabilities and Stockholders Equity $ $