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Brothers Mike and Tim Hargenrater began operations of their tool and die shop ( H & H Tool, Inc.) on January 1, 2019. The annual
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: Transactions during 2020 follow: a. Borrowed $15,000 cash on a five-year, 8 percent note payable, dated March 1 , 2020. b. Purchased land for a future building site; paid cash, $13,000. c. Earned $215,000 in revenues for 2020 , including $52,000 on credit and the rest in cash. d. Sold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2020. e. Incurred $89,000 in wages expense and $25,000 in miscellaneous expenses for 2020 , with $20,000 on credit and the rest paid in cash. f. Collected accounts receivable, $34,000. g. Purchased other assets, $15,000 cash. h. Purchased supplies on account for future use, $27,000. L. Paid accounts payable, $26,000. j. Signed a three-year $33,000 service contract to start February 1, 2021. k. Declared cash dividends on December 1,$25,000, which were paid by December 31. [Hint: Prepare two entries.] Data for adjusting entries: 1. Supplies counted on December 31,2020,$18,000. m. Depreciation for the year on the equipment, $10,000. n. Interest accrued on notes payable (to be computed). o. Wages earned by employees since the December 24 payroll but not yet paid, $16,000. p. Income tax expense, $11,000, payable in 2021. Compute the applicable ratios shown below for 2020 . (Round your inswers for a. and b. to 2 decimal places. Enter your answer for c. s a whole percentage rounded to one decimal place (i.e. 0.288 hould be entered as 28.8 ).)
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