I need assistance with this assignment. I need the Journal entries (including closing entries), t-accounts, Income Statement, and Balance Sheet.

NAME: ________________________ Harriet's Hats, Inc. Harriet's Hats is a fictional company. The following information includes the balance sheet as of December 31, 2014, and the details of the transactions that occurred during 2015. Background: Harriet's Hats is a hat retailer (in other words, Harriet's buys hats from a hat manufacturer and then sells them in their stores). Transactions for 2015 are representative of such a company's business activities. HINT: Read through the entire assignment at least twice before beginning to do any work. This will help you familiarize yourself with all of the important facts. Transactions for 2015: 1. Sales and Accounts Receivable a. Harriet's hats during 2015 had a sales price of $90 per hat. All sales were made on account. b. Cash collections on account amounted to $300,000. c. On July 1, 2015, Harriet's identified $25,000 of receivables as being uncollectible and wrote them off. d. Harriet's follows a percentage-of-receivables approach to estimate their accounts receivable that will become uncollectible. As of the end of 2014, Harriet's estimates that 8% of their receivables will be uncollectible. 2. Inventory a. Harriet's began 2015 with 2,000 hats which had a cost of $30 each. Employees physically counted 1,800 hats remaining in the warehouse at the end of 2015. Harriet's uses a periodic LIFO inventory system to cost their inventory. The following purchases (all on account) were made during 2015: i. January 15th - 2,000 hats @ $41.00 each ii. March 22nd - 1,500 hats @ $43.00 each iii. August 5th - 3,000 hats @ $45.00 each iv. October 26th - 1,300 hats @ $50.00 each b. During 2015, Harriet's made cash payments to inventory suppliers on the following dates: i. January 29th - $65,600 ii. April 16th - $77,400 iii. October 2nd - $135,000 iv. November 30th - $58,500 3. Property, Plant and Equipment a. Harriet's uses straight-line depreciation for all of its store fixtures and office equipment. b. Below is a schedule of the store fixtures and office equipment Harriet's had in place at the end of 2014. FIXTURES AND EQUIPMENT (as of December 31, 2014) ID # Historical Estimated Estimated Date acquired Cost Useful Life Salvage Value 1256 $48,000 12 years $0 Jan. 1, 2007 1876 $60,000 10 years $3,000 Jan. 1, 2008 4299 $92,000 8 years $7,000 Jan. 1, 2009 c. On January 1, 2015 new store fixtures were purchased for $32,000 in cash. Harriet's expects the fixtures to have a 10 year useful life and a $4,000 salvage value. d. On April 1, 2015 office equipment (ID#1876) was sold for $20,000. 4. 5. 6. 7. Debt a. On August 1, 2015, Harriet's paid-off the note payable that was outstanding at the beginning of the period. The note had an 8% interest rate, had been issued on August 1, 2014, and required semiannual interest payments on Jan 31, 2015 and July 31, 2015. b. On October 1, 2015, Harriet's borrowed $150,000 on a new note payable. The new note carries a 6% interest rate with semiannual interest payments required on March 31, 2016 and September 30, 2016. Operations a. Harriet's made a rent payment of $48,000 on August 1, 2015. The payment was for rent on the store building and was prepaid for one year. The balance in the prepaid account at the end of 2014 represents the rent for January through July 31, 2015 that was paid for on August 1, 2014. b. Cash paid out during 2015 for wages totaled $55,000. Records indicate that salaries for the last week of December 2015 amounted to $7,500 and would be paid at the end of the first week in January 2016 (a two-week pay period). c. Other expenses (paid in cash) totaled $12,500. Income Taxes a. On March 15, 2015, Harriet's paid their 2014 income taxes. Harriet's will pay their 2015 income taxes on March 15, 2016. Harriet's has a 30% income tax rate for both 2014 and 2015. Common Stock a. On December 1, 2015, dividends of $10,000 were declared and paid. b. On January 1, 2015, Harriet's issued 5,000 additional shares of common stock for $15 per share. Required: 1. Using the journal and T-accounts provided, record the transactions that occurred during 2015. If no specific date is provided for a transaction, leave the date column blank. IMPORTANT: Since there are several transactions for which no date is given, the journal entries do NOT need to be in chronological order. All adjusting and closing entries should have December 31, 2015 as the date. 2. Prepare the balance sheet, statement of retained earnings and income statement for Harriet's Hats, Inc. for the year ended December 31, 2015. 3. Record the closing entries for the company (this step is often skipped, don't lose these points). Check Figures: Income Taxes Expense: $51,728 Total Current Liabilities: $233,478 Total Current Assets: $517,000 Harriet's Hats Balance Sheet For the Year Ended December 31, 2014 Assets Cash Accounts Receivable Less: Allowance for Doubtful Accounts Net Accounts Receivable Prepaid Rent Inventory Total Current Assets Property, Plant, and Equipment Less: Accumulated Depreciation Net Property, Plant, and Equipment Total Assets Liabilities and Owner's Equity Accounts Payable Wages Payable Interest Payable Income Taxes Payable Notes Payable Total Current Liabilities Common Stock (20,000 shares outstanding, $1 par) Additional Paid In Capital Retained Earnings Total Liabilities and Owner's Equity $ 100,000 $ 59,800 24,500 60,000 244,300 $ 64,350 308,650 65,000 (5,200) 200,000 (135,650) $ $ 12,000 5,000 3,000 42,000 90,000 152,000 $ 20,000 20,000 116,650 308,650 Harriet's Hats Journal Entries Date Account Debit Credit Harriet's Hats Journal Entries Date Account Debit Credit Harriet's Hats Journal Entries Date Account Debit Credit Harriet's Hats Journal Entries Date Account CLOSING ENTRIES Debit Credit $ $ Cash 100,000 Prepaid Rent 24,500 $ $ Accounts Receivable 65,000 Inventory 60,000 Allowance for Doubtful Accounts $ 5,200 $ Property, Plant, and Equipment 200,000 Accumulated Depreciation $ 135,650 Accounts Payable $ 12,000 Wages Payable $ 5,000 Interest Payable $ 3,000 Income Taxes Payable $ 42,000 Notes Payable $ 90,000 Common Stock $ 20,000 Additional Paid In Capital $ 20,000 Retained Earnings $ 116,650 Sales Revenue Purchases Cost of Goods Sold Rent Expense Interest Expense Bad Debts Expense Depreciation Expense Wages Expense Other Expenses Gain/Loss on Sale of Equipment Income Tax Expense Dividends Harriet's Hats Income Statement For the Year Ended December 31, 2015 Sales Less: Cost of Goods Sold Gross Profit Assets Cash Accounts Receivable Less: Allowance for Doubtful Accounts Net Accounts Receivable Prepaid Rent Inventory Total Current Assets Operating Expenses Rent Expense Interest Expense Bad Debts Expense Depreciation Expense Wages Expense Other Operating Expenses Total Operating Expenses Property, Plant, and Equipment Less: Accumulated Depreciation Net Property, Plant, and Equipment Total Assets Other gains and losses Gain/Loss on sale of equipment Income before income taxes Income taxes Net Income Basic Earnings Per Share Harriet's Hats Balance Sheet As of December 31, 2015 $ Harriet's Hats Statement of Retained Earnings For the Year Ended December 31, 2015 Beginning Retained Earnings Plus: Net Income Less: Dividends Ending Retained Earnings Liabilities and Owner's Equity Accounts Payable Wages Payable Interest Payable Income Taxes Payable Notes Payable Total Current Liabilities Common Stock (__________ Shares Outstanding, ___ par) Additional Paid In Capital Retained Earnings Total Liabilities and Owner's Equity