Brothers Mike and Tim Hargenrater began operations of their tool and die shop (H & H Tool, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, follows: H & H Tool, Inc. Trial Balance on January 1, 2020 Account Titles Debit Credit Cash 5,000 Accounts receivable 4,000 Supplies 19,000 Land Equipment 86,000 Accumulated depreciation (on equipment) 16,000 Other noncurrent assets (not detailed to simplify) 8,000 Accounts payable Wages payable Interest payable Dividends payable Income taxes payable Long-term notes payable Common stock (8,000 shares, $.50 par value) 4,000 Additional paid-in capital 88,000 Retained earnings 14,000 Service revenue Supplies expense Wages expense Depreciation expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals 122,000 122,000 Transactions during 2020 follow: a. Borrowed $20,000 cash on a 5-year, 6 percent note payable, dated March 1, 2020. b. Purchased land for a future building site on March 15, 2020; paid cash, $19,000. c. Earned $279,000 in revenue. Transactions dated August 30, 2020, including $57,000 on credit and the rest in cash. d. Sold 6,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2020. e. Incurred $96,000 in wages expense and $33,000 in miscellaneous expenses for 2020, with $28,000 on credit and the rest paid in cash. f. Collected accounts receivables on November 10, 2020, $32,000. g. Purchased other assets on November 15, 2020, $19,000 cash. h. Purchased supplies on account for future use on December 1, 2020, $31,000. Paid accounts payable on December 15, 2020, $29,000. j. Signed a three-year $37,000 service contract on December 17, 2020 to start February 1, 2021. k. Declared cash dividends on December 1, 2020, $29,000, which were paid by December 31. Data for adjusting entries: 1. Supplies counted on December 31, 2020, $22,000. m. Depreciation for the year on the equipment, $18,000. n. Interest accrued on notes payable (to be computed). o. Wages earned by employees since the December 24 payroll but not yet paid, $21,000. p. Income tax expense, $17,000, payable in 2021. Analyze Cash Flow Impact: Transaction 1 2 Type of Effect on Direction and Amount of Effect Cash Flows 3. 4 5 6 No Transaction General Journal Debit Credit 1 March 01, 2020 2 March 15, 2020 4 August 30, 2020 January 01, 2020 5 October 15, 2020 November 10, 2020 November 15, 2020 B December 01, 2020 H & H Tool, Inc. Income Statement For the Year Ended December 31, 2020 Operating revenues: Operating expenses: Total operating expenses Other item