Hassellhouf Company's 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 Accounts Receivable Notes Receivable $28,100 38,200 9,600 0 37,600 3,600 20,000 153,000 62,000 8,700 $500 Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patents Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Notes Payable (due in 2020) Interest Payable Notes Payable (due after 2020) Common Stock Retained Earnings Dividends 51,000 24,800 26,900 0 6,000 12,000 0 31,000 52,000 77,800 12,500 900,800 0 0 Sales Revenue Interest Revenue Rent Revenue Gain on Disposal of Plant Assets Bad Debts Expense Cost of Goods Sold 0 0 634,000 634,000 0 0 Cost of Goods Sold Depreciation Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense 0 63,500 0 112,000 $1,182,800 Total $1,182,800 Unrecorded transactions: 1. 2. 3. 4. 5. 6. On May 1, 2019, Hassellhouf purchased equipment for $20,600 plus sales taxes of $1,700 (all paid in cash). On July 1, 2019, Hassellhouf sold for $3,200 equipment which originally cost $5,200. Accumulated depreciation on this equipment at January 1, 2019, was $2,000; 2019 depreciation prior to the sale of the equipment was $500. On December 31, 2019, Hassellhouf sold on account $9,800 of inventory that cost $6,860. Hassellhouf estimates that uncollectible accounts receivable at year-end is $4,000. The note receivable is a one-year, 8% note dated April 1, 2019. No interest has been recorded. The balance in prepaid insurance represents payment of a $3,600 6-month premium on September 1, 2019. The buildings are being depreciated using the straight-line method over 30 years. The salvage value is $30,600. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. The equipment purchased on May 1, 2019, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,900. The patent was acquired on January 1, 2019, and has a useful life of 10 years from that date. Unpaid salaries and wages at December 31, 2019, total $5,000. The unearned rent revenue of $6,000 was received on December 1, 2019, for 3 months' rent. Both 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. 7. 8. 9. 10. 11. 12. 13. Prepare journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1. 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 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 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 V Assets $ $ $ $ Liabilities and Stockholder's Equity $ $