ES Prepare a statement of income for 2020. (Enter loss using either a negative sign preceding the Hughes Tools Company Statement of Income Sales Revenue 947500 Expenses Equipment 262900 Selling and Administrative Expenses 85000 $ SHOW LIST OF ACCOUNTS Application Problem 2-15A a, b1-4 (Part Level Submission) The Hughes Tools Company started business on October 1, 2019. Its fiscal year runs through to September 30 the following year. The following transactions occurred in the fiscal year that started on October 1 2019, and ended on September 30, 2020. 1. On October 1, 2019, Jill Hughes invested $178,000 to start the business. Hughes is the only owner. She was issued 10,000 common shares 2. On October 1, Hughes Tools borrowed $228,000 from a venture capitalist (a lender who specializes in start-up companies) and signed a note payable. On October 1, the company rented a building. The rental agreement was a two-year contract requiring quarterly rental payments (every three months) of $15,000, payable in advance. The first payment made on October 1, 2019 (covering the period from October 1 to December 31). Thereafter, payments were due on December 31, March 31, June 30, and September 30 for each three month period that followed. All the rental payments were made as specified in the agreement. 4. On October 1, the company purchased equipment costing $262,900 for cash. 5. Initial inventory was purchased for $86,000 cash. 6. Additional purchases of inventory during the year totalled $571,000, all on account. 7. Sales during the year totalled $947,800, of which $852.750 were on account 8. Collections from customers on account totalled $658,500. 9. Payments to suppliers on account totalled $515,000. 10. The cost of the inventory that was sold during the year was $559,500. 11. Selling and administrative expenses totalled $85,000 for the year. Of this amount, $5,900 was unpaid at year end. 12. Interest on the note payable from the venture capitalist was paid at year end (September 30, 2020). The interest rate on the note is 10%. In addition, $29,500 of the note principal was repard at that time 13. The equipment was depreciated based on an estimated useful life of 10 years and a residual value of $23,900. 14. The company dedared and paid a dividend of $5,400. (a) Your answer is correct Collapse question part Show the effects of the transactions on the basic accounting equation of an amount reduces the account balance then enter with negative sion. Indicate whether it is Revenue Expenser Harred in the last column. The case if there is no effect then select "Not Applicable) javascriptvo do Type here to search e a O RI 9