Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brothers Herm and Steve Hargenrater began operations of their tool and die shop (H & H Tool) on January 1, 1987, in Meadville, PA. The

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Brothers Herm and Steve Hargenrater began operations of their tool and die shop (H \& H Tool) on January 1, 1987, in Meadville, PA. The annual reporting period ends December 31. Assume that the trial balance on January 1,2023 , was as follows: Transactions during 2023 follow. All dollars are in millions, except per share amounts: a. Borrowed $24 cash on a 5-year, 10 percent note payable, dated March 1, 2023. b. Sold 4 additional shares of common stock for cash at $1 market value per share on January 1, 2023. c. Purchased land for a future building site; paid cash, $19. d. Earned $308 in revenues for 2023 , including $65 on credit and the rest in cash. e. Incurred $105 in wages expense and $41 in miscellaneous expenses for 2023 , with $36 on credit and the rest paid in cash. f. Collected accounts receivable, $40. g. Purchased other noncurrent assets, $14 cash. h. Purchased supplies on account for future use, $39. 1. Paid accounts payable, $38. j. Declared cash dividends on December 1,$20. k. Signed a three-year $45 service contract to start February 1, 2024. I. Paid the dividends in (j) on December 31 . Data for adjusting entries (amounts in millions): m. Supplies counted on December 31, 2023, $30. n. Depreciation for the year on the equipment, $15. o. Interest accruein on notes payable (to be computed). p. Wages earned by employees since the December 24 payroll but not yet paid, $17. q. Income tax expense, \$14, payable in 2024. 1 Record the borrowing of $24 cash on a 5 -year note payable \&mimed March 1, 2023. 2 Record the issuance of 4 additional shares for cash at $1 market value per share on January 1, 2023. 3 Record the purchase of land for a future building site, $19 cash. 4 Record the entry for revenues for 2023,$308, including $65 on credit and the rest in cash. 5 Record the wages expense of $105 and miscellaneous expenses of $41 incurred for 2023 , with $36 on credit and the rest paid in cash. 6 Record the collection of accounts receivable, $40. 7 Record the purchase of other noncurrent assets, $14 cash. 8 Record the purchase of supplies on account for future use, $39. 9 Record the payment of accounts payable, $38. 10 Record the $20 cash dividends declared on December 1. 11 Record the $45 three-year service contract signed to start on February 1, 2024. Journal entry worksheet 1RecordthepaymentofcashdividendsonDecember31,$20.58910 Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Design Implementation And Audit Of Occupational Health And Safety Management Systems

Authors: Ron C. McKinnon

1st Edition

1032571039, 978-1032571034

More Books

Students also viewed these Accounting questions