Prepare T acoounts, Balance sheet, Retained earnings statement and Income statement for the year ended December 31,2020. Please record each transaction on T-accounts as follows e.g 1a 0000$ to determine how you come up with this number.

Comprehensive Individual Project: Harriet's Hats, Inc. Harriet's Hats is a fictional company. The following information includes the balance sheet as of December 31, 2019, and the details of the transactions that occurred during 2020 Background Harriet's Hats is a hat retailer in other words, Harriers buys hats from a hat manufacturer and then sells them in their stores). Transactions for 2020 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. Required: 1 Using the T-accounts provided, record the transactions that occurred during 2020 2 Prepare the balance sheet, retained earnings statement and income statement for Haniels Hats, inc. for the year ended December 31, 2020 Transactions for 2020 1. Sales and Accounts Receivable a During the year, each hat had a sales price of $30. All sales were made on account b. Cash collections on account amounted to 541,000 C. During the year, Hame's identified $350 of receivables as being uncolectible and wrote them off d. Harriet's follows a percentage-of-receivables approach to estimates accounts receivable that will become uncolectible. As of the end of 2020, Harriet's estimates that 12% of its receivables will be uncollectible 2. Inventory a. Harriet's began 2020 with 500 hats which had a cost of $8 each Employees physically counted 525 hats remaining in the warehouse at the end of 2020 Hamets uses a periodic LIFO inventory system to cost their inventory The following purchases (all on account) were made during 2020 (1) January 15 - 405 hats $10.00 each (2) March 23 - 310 hals @ 12.00 each (3) July 2nd - 525 hats @ $1400 each (4) October 31 - 430 hats @ 15 each b. During 2020, Harriet's made cash payments to inventory suppliers totaling $21,000 3. Property, plant and Equipment a Harriers uses straight-line depreciation for all of its store factures and office equipment b. Below is a schedule of the store fixtures and office equipment Hamers had in place at the end of 2019 FIXTURES AND EQUIPMENT (as of December 31, 2019 IDE Historical Cost Estimated Estimated Savage Date acquired Useful Life Value 1256 $12,000 10 years $1.200 Jan 1 2014 $1,700 5 years $300 Jan 1, 2016 4299 $23,000 5 years $1,000 Jan 1, 2019 1876 cOn January 1, new store fritures were purchased for $3,000 in cash Harrels expects the fitues to have a 5 year useful life and a $500 salvage value d On July 1, office equipment (ID#1876) was sold for $520 4. Debt a on September 1, 2020, Harriet's paid off the note payable that was outstanding at the beginning of the period. The potu had an 8% interest rate, had been issued on September 1, 2019, and required semiannual interest payments on b. Also on September 1, 2020, Harriet's borrowed $3.500 on a new riote payable. The new note carries a 6% interest rate with similar payment terms as the note Hamlet's just paid-off 5. Operations a Harriet's made two rent payments of $1,650 during 2020 (on March 1 and September 1) The payments were for rent on the store building and were prepaid for six months each. The balance in the prepaid account at the end of 2020 represents the rent for January and February 2021. Cash paid out during 2020 for wages totaled $12.200 Records indicate that salaries for the last week of December amounted to $300 and would be paid at the end of the first week in January (a two-week pay perod) Other expenses (paid in cash) totaled $2,102 6. Income Taxes In March of 2020, Harriet's paid their 2019 income taxes Harriets has a 30% income tax rate for both 2019 and 2020 7. Common Stock a Dividends of $3,300 were declared and paid during 2020. 6. New common stock was issued for $12,000 during 2020 Hartier's Hats, Inc Balance Sheet December 31, 2019 $15,000 5.000 (500 Assets Cash Accounts Receivable Less: Allowance for Bad Debts Net Accounts Receivable Prepaid Rent Inventory Total Current Assets Property, Plant, and Equipment Less: Accumulated Depreciation 4.500 500 4.000 24,000 36,700 (12.000) Net Property, Plant, and Equipment Total Assets 24,700 $48.700 Liabilities and Owner's Equity Accounts Payable Wages Payable Interest Payable Income Taxes Payable Notes Payable Total Current Liabilities $2.500 170 54 900 2400 6,034 Common Stock Retained Earnings Total Liabilities and Owner's Equity 20,000 22,666 $48,700 NAME Harriet's Hats Income Statement For the Year Ended December 31, 2020 Sales Less Cost of Goods Sold Gross Profit Harriet's Hats Balance Sheet As of December 31, 2020 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 on sale of equipment Income before income taxes Income taxes Liabilities and Owner's Equity Accounts Payable Wages Payable Interest Payable Income Taxes Payable Notes Payable Total Current Liabilities | | || Net Income Harriet's Hats Statement of Retained Earnings For the Year Ended December 31, 2020 Beginning Retained Earings Plus Net Income Less Dividends Ending Retained Earnings Common Stock Retained Earnings Total Liabilities and Owner's Equity NALE Cash A toutes Account Rece 5.000 so 5 Prepaid Rent 500 henry 4.000 Property and Em 36.700 Accumulated Depreciation 5 12000 Accounts Payable 5 Was Pa 2.500 170 Payable 5 Income Toes Payable Notes Pay 64 500 2000 TT Common Stock TO Retained Coming 5 2260 NAME Sales Revenue Purchases Cost of Goods Sold Rent Expense Inforest Expense Bad Debts Expense Depreciation Expense Wapes Expense Other Expenses Gain Loss on Sale of Equipment Income Tax Expense Income Summary