Please answer this question, there was not statement of retained earnings given.

Happy ReLeaf Ltd Required: 1. Prepare the necessary journal entries (including adjusting journal entries) for January 31, 2020, their quarter end (November - January 31). Include appropriate descriptions for each lournal entry. William has provided the balance sheet and income statement for year-ended October 31, 2019 (Exhibit B) and a list of the business transactions for the first quarter ended January 31, 2020 (Exhibit C). 2. Prepare the Statement of Financial Position, the Statement of Retained Earnings, and the Statement of Earnings for the quarter ended January 31, 2020. Happy ReLeaf Ltd Exhibit B: Financial Statements October 31, 2019 Happy ReLeaf Ltd. Income Statement Year Ended October 31, 2019 In-Store Sales 709,095 Sales return (12,074) 697,021 100.0% 413,714 59.4% 283,308 1.4% Net Revenue Cost of Goods Sold Gross Margin Depreciation Management Fee General and administrative Marketing Salaries Equipment rental Legal fees Supply Total Expenses OPERATING INCOME Other income 5,609 50,215 40,445 9,940 33,573 6,446 8,809 2,781 0.9% 1.39 0.4% 157,818 125,490 1,743 22.6% 18.0% 0.3% NET OPERATING INCOME 127,233 18.3% Income Tax @35% NET INCOME 44,531 82,701 6.4% 11.9% Happy ReLeaf Ltd Happy ReLeaf Ltd. Statement of Financial Position October 31, 2019 ASSETS Current assets: Cash Accounts receivable Prepaid expenses and deposits Inventory Total current assets LIABILITIES Current liabilities: Trade payables Other current liabilities 150,802 102,209 232,831 24,894 32,136 202,151 492,012 Total current liabilities 253,010 Non-current assets: Property, plant and equipment Accumulated Depreciation Non-current liabilities: Notes Payable 29,989 39,298 (5,609) 33,689 Total non-current assets Total non-current liabilities 29,989 160,000 SHAREHOLDERS' EQUITY Share capital Retained Earning Total shareholders' equity 82,701 242,701 Total assets 525,701 Total liabilities and shareholders' equity 525,701 Exhibit C: Additional Information The following list is a summary of activities for HRL's Quarter Ended January 31, 2020: 1. In-store sales for the quarter ending January 31, 2020 ("Q1") total $195,576. Customers who require products for medicinal purposes are pre-approved and can buy on account. During Q1, 2% of the total in-store sales are on account. 2. Online sales for Q1 were an additional $29,336. All online sales were paid in full online and received the 3% discount. 3. The cost of goods sold is for all sales is 55% of the selling price. 4. Sales returns for Q1 amounted to $3,320 and were on cash sales only. 5. The company purchased inventory in Q1 for $135,000. HRL paid $100,000 cash and the remainder on account. 6. HRL conducted a physical inventory count on January 31, 2020. There was $215,759 of inventory on hand on that date. 7. An online marketing campaign for Q1 has ended. The company paid for this campaign in September, 2019 and the $4,000 related to this campaign is part of the prepaid expense balance the October 31, 2019 statement of financial position. 8. HRL received a bill on January 22, 2020, for $3,500 in legal services performed in Q1. They will pay the bill in February, 2020. 9. On January 1, 2020, the company borrowed $20,000 cash from the bank at 5% for a 5-year term. Interest is paid on the first day of each month beginning February 1 and the principal is due at the end of the 5-year term. HRL will use these funds to improve the retail store's appearance. 10. The company used the loan obtained in Item 9 to purchase a new refrigerator for the new edible inventory products. The refrigerator cost $15,000 and was delivered to HRL's location on January 1, 2020 and immediately placed into use. The refrigerator is estimated to last 3 years and has no residual value. The company uses the straight-line method to depreciation their equipment. Happy Releaf Ltd 11. Depreciation expense on HRL's existing property and equipment is $2,000 for Q1. 12. William, the controller, provided his spreadsheet summarizing all cash payments made in Q1: Management fees $ 13,850 General and administrative $ 11,155 Salaries $ 9,260 Equipment rental $ 1,778 Supplies $ 1,200 13. The current portion of HRL's Note Payable is $7,700. 14. Online sales totaling $12,000 still require age verification. The company records these online orders as sales for the quarter. These sales are already included in the sales described in point #2 above. 15. HRL has an income tax rate of 35%. The company will make its first quarterly payment at the end of February 2020 based on their Q1 income before income tax