Sorry this is long

Background: Harriets Hats is a hat retailer (in other words, Harriets buys hats from a hat manufacturer and then sells them in their stores). Transactions for 2014 are representative of such a companys 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.

Harriet's Hats Balance Sheet

For the Year Ended December 31, 2013

Assets
Cash		$ 45,000
Accounts Receivable	45,000
Less: Allowance for Doubtful Accounts	(4,500)
Net Accounts Receivable		40,500
Prepaid Rent		21,000
Inventory		70,000
Total Current Assets		$ 176,500
Property, Plant, and Equipment	87,000
Less: Accumulated Depreciation	(52,200)
Net Property, Plant, and Equipment		34,800
Total Assets		$ 211,300
Liabilities and Owners Equity
Accounts Payable		$ 5,000
Wages Payable		4,000
Interest Payable		1,000
Income Taxes Payable		5,000
Notes Payable		50,000
Total Current Liabilities		$ 65,000
Common Stock (15,000 shares outstanding, $1 par)		15,000
Additional Paid In Capital		25,000
Retained Earnings		106,300
Total Liabilities and Owners Equity		$ 211,300

Transactions for 2014:

1. Sales and Accounts Receivable

Harriets hats during 2014 had a sales price of $58 per hat. All sales were made on account.

Cash collections on account amounted to $250,000.

On July 1, 2014, Harriets identified $9,350 of receivables as being uncollectible and wrote them off.

Harriets follows a percentage-of-receivables approach to estimate their accounts receivable that will become uncollectible. As of the end of 2013, Harriets estimates that 10% of their receivables will be uncollectible.

2. Inventory

a. Harriets began 2014 with 2,000 hats which had a cost of $35 each. Employees physically counted 500 hats remaining in the warehouse at the end of 2014. Harriets uses a periodic LIFO inventory system to cost their inventory. The following purchases (all on account) were made during 2014:

January 15th 750 hats @ $36.00 each

March 22nd 1,000 hats @ $38.00 each

August 5th 1,250 hats @ $39.00 each

October 26th 1,500 hats @ $40.00 each

b. During 2014, Harriets made cash payments to inventory suppliers on the following dates:

January 29th $21,600

April 16th $45,600

October 2nd $48,750

November 30th $36,000

3. Property, Plant and Equipment

Harriets uses straight-line depreciation for all of its store fixtures and office equipment.

Below is a schedule of the store fixtures and office equipment Harriets had in place at the end of 2013.

	FIXTURES AND EQUIPMENT (as of December 31, 2013)
ID #		Historical Cost	Estimated Useful Life	Estimated Salvage Value	Date acquired
1256		$36,000	10 years	$0	Jan. 1,	2007
1876		$20,000	6 years	$2,000	Jan. 1,	2009
4299		$31,000	8 years	$7,000	Jan. 1,	2010

On January 1, 2014 new store fixtures were purchased for $20,000 in cash. Harriets expects the fixtures to have a 10 year useful life and a $4,000 salvage value.

On April 1, 2014 office equipment (ID#1876) was sold for $5,000.

4. Debt

On November 1, 2014, Harriets paid-off the note payable that was outstanding at the beginning of the period. The note had a 12% interest rate, had been issued on November 1, 2013, and required semiannual interest payments on April 30, 2014 and October 31, 2014.

On December 1, 2014, Harriets borrowed $62,000 on a new note payable. The new note carries a 9% interest rate with semiannual interest payments required on May 31, 2015 and November 30, 2015.

5. Operations

Harriets made a rent payment of $48,000 on August 1, 2014. 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 2013 represents the rent for January through July 31, 2014 that was paid for on August 1, 2013.

Cash paid out during 2014 for wages totaled $32,000. Records indicate that salaries for the last week of December 2014 amounted to $1,500 and would be paid at the end of the first week in January 2015 (a two-week pay period).

Other expenses (paid in cash) totaled $6,500.

6. Income Taxes

a. On March 15, 2014, Harriets paid their 2013 income taxes. Harriets will pay their 2014 income taxes on March 15, 2015. Harriets has a 30% income tax rate for both 2013 and 2014.

7. Common Stock

On December 1, 2014, dividends of $8,000 were declared and paid.

On January 1, 2014, Harriets issued 12,500 additional shares of common stock for $5 per share. Required:

Using the journal and T-accounts provided, record the transactions that occurred during 2014. 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, 2014 as the date.

Prepare the balance sheet, statement of retained earnings and income statement for Harriets Hats, Inc. for the year ended December 31, 2014.

Record the closing entries for the company (this step is often skipped, dont lose these points).

Check Figures:

Income Taxes Expense: $3,861

Total Current Liabilities: $94,626

Total Current Assets: $262,835

I need the detailed Journal Entries for all the Transactions and the Calculations for LIFO, Depreciation, and the Final Balance Sheet finished. Thanks So Much!!

Here is the Balance Sheet I need.