Hassellhouf Companys trial balance at December 31, 2020, is as follows. All 2020 transactions have been recorded except for the items described following the trial balance.

		Debit		Credit
Cash		$25,500
Accounts Receivable		36,000
Notes Receivable		9,100
Interest Receivable		0
Inventory		36,000
Prepaid Insurance		4,200
Land		20,300
Buildings		137,100
Equipment		61,800
Patents		9,400
Allowance for Doubtful Accounts				$600
Accumulated DepreciationBuildings				45,700
Accumulated DepreciationEquipment				24,720
Accounts Payable				27,500
Salaries and Wages Payable				0
Unearned Rent Revenue				2,100
Notes Payable (due in 2018)				12,000
Interest Payable				0
Notes Payable (due after 2018)				35,500
Owners Capital				107,280
Owners Drawings		14,500
Sales Revenue				901,000
Interest Revenue				0
Rent Revenue				0
Gain on Disposal of Plant Assets				0
Bad Debts Expense		0
Cost of Goods Sold		632,000
Depreciation Expense		0
Insurance Expense		0
Interest Expense		0
Other Operating Expenses		61,500
Amortization Expense		0
Salaries and Wages Expense		109,000
Total		$1,156,400		$1,156,400

Unrecorded transactions:

1.		On May 1, 2020, Hassellhouf purchased equipment for $17,800 plus sales taxes of $900 (all paid in cash).
2.		On July 1, 2020, Hassellhouf sold for $3,600 equipment which originally cost $5,200. Accumulated depreciation on this equipment at January 1, 2020, was $1,800; 2020 depreciation prior to the sale of the equipment was $400.
3.		On December 31, 2020, Hassellhouf sold on account $5,100 of inventory that cost $3,200.
4.		Hassellhouf estimates that uncollectible accounts receivable at year-end is $4,100.
5.		The note receivable is a one-year, 8% note dated April 1, 2020. No interest has been recorded.
6.		The balance in prepaid insurance represents payment of a $4,200 6-month premium on September 1, 2020.
7.		The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,000.
8.		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.
9.		The equipment purchased on May 1, 2020, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,200.
10.		The patent was acquired on January 1, 2020, and has a useful life of 10 years from that date.
11.		Unpaid salaries and wages at December 31, 2020, total $2,100.
12.		The unearned rent revenue of $2,100 was received on December 1, 2020, for 3 months rent.
13.		Both the short-term and long-term notes payable are dated January 1, 2020, and carry a 9% interest rate. All interest is payable in the next 12 months.

(a)

Partially correct answer iconYour answer is partially correct.

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 0 for the amounts.)

Prepare an updated December 31, 2020, trial balance.

Prepare journal entries for the transactions listed above.

Prepare a 2020 income statement

Prepare a 2020 an owners equity statement

Prepare a December 31, 2020, classified balance sheet.