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Brothers Mike and Tim Hargenrater began operations of their tool and die shop ( H & H Tool, Inc. ) on January 1 , 2
Brothers Mike and Tim Hargenrater began operations of their tool and die shop H & H Tool, Inc. on January The annual reporting period ends December The trial balance on January follows:
H & H Tool, Inc.
Trial Balance on January
Debit Credit
Cash
Accounts receivable
Supplies
Land
Equipment
Accumulated depreciation on equipment
Other noncurrent assets not detailed to simplify
Accounts payable
Wages payable
Interest payable
Dividends payable
Income taxes payable
Longterm notes payable
Common stock shares, $ par value
Additional paidin capital
Retained earnings
Service revenue
Depreciation expense
Supplies expense
Wages expense
Interest expense
Income tax expense
Miscellaneous expenses not detailed to simplify
Totals
Transactions during follow:
Borrowed $ cash on a fiveyear, percent note payable, dated March
Purchased land for a future building site; paid cash, $
Earned $ in revenues for including $ on credit and the rest in cash.
Sold additional shares of capital stock for cash at $ market value per share on January
Incurred $ in wages expense and $ in miscellaneous expenses for with $ on credit and the rest paid in cash.
Collected accounts receivable, $
Purchased other assets, $ cash.
Purchased supplies on account for future use, $
Paid accounts payable, $
Signed a threeyear $ service contract to start February
Declared cash dividends on December $ which were paid by December Hint: Prepare two entries.
Data for adjusting entries:
Supplies counted on December $
Depreciation for the year on the equipment, $
Interest accrued on notes payable to be computed
Wages earned by employees since the December payroll but not yet paid, $
Income tax expense, $ payable in
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