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 Debit Credit Cash 5,000 Accounts receivable 4,000 Supplies 27,000 Land Equipment 94,000 Accumulated depreciation (on equipment) 13,000 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 96,000 Retained earnings 25,000 Service revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals 138,000 138,000 Transactions during 2020 follow Borrowed $24,000 cash on a 5 year, 10 percent note payable, dated March 1, 2020 Purchased land for a future building site paid cash, $19,000 Earned $308,000 in revenues for 2020, including $65,000 on credit and the rest in cash Sold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2020 Incurred $105,000 in wages expense and $41,000 in miscellaneous expenses for 2020, with $36,000 on credit and the rest paid in cash Collected accounts receivable, $40,000 Purchased other assets, $14,000 cash Purchased supplies on account for future use, $39,000 Paid accounts payable, $38,000 Signed a three year $45,000 service contract to start February 1, 2021 Declared cash dividends on December 1, $20,000, which were paid by December 31 Data for adjusting entries Supplies counted on December 31, 2020, $30,000 Depreciation for the year on the equipment, $15,000 Interest accrued on notes payable (to be computed) Wages earned by employees since the December 24 payroll but not yet paid, $17,000 Income tax expense, $14,000, payable in 2021 COMP4 1 Part 4 4 Prepare an income statement (including earnings per share), statement of stockholders equity, and balance sheet (For the Statement of Stockholders' Equity and Balance Sheet only, items to be deducted must be indicated with a minus sign Round Earnings per share to 2 decimal places )

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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 reporting

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
	Debit		Credit
Cash		5,000
Accounts receivable		4,000
Supplies		27,000
Land
Equipment		94,000
Accumulated depreciation (on equipment)				13,000
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				96,000
Retained earnings				25,000
Service revenue
Depreciation expense
Supplies expense
Wages expense
Interest expense
Income tax expense
Miscellaneous expenses (not detailed to simplify)
Totals		138,000		138,000

Transactions during 2020 follow:

Borrowed $24,000 cash on a 5-year, 10 percent note payable, dated March 1, 2020.
Purchased land for a future building site; paid cash, $19,000.
Earned $308,000 in revenues for 2020, including $65,000 on credit and the rest in cash.
Sold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2020.
Incurred $105,000 in wages expense and $41,000 in miscellaneous expenses for 2020, with $36,000 on credit and the rest paid in cash.
Collected accounts receivable, $40,000.
Purchased other assets, $14,000 cash.
Purchased supplies on account for future use, $39,000.
Paid accounts payable, $38,000.
Signed a three-year $45,000 service contract to start February 1, 2021.
Declared cash dividends on December 1, $20,000, which were paid by December 31.

Data for adjusting entries:

Supplies counted on December 31, 2020, $30,000.
Depreciation for the year on the equipment, $15,000.
Interest accrued on notes payable (to be computed).
Wages earned by employees since the December 24 payroll but not yet paid, $17,000.
Income tax expense, $14,000, payable in 2021.

COMP4-1 Part 4

4. Prepare an income statement (including earnings per share), statement of stockholders equity, and balance sheet. (For the Statement of Stockholders' Equity and Balance Sheet only, items to be deducted must be indicated with a minus sign. Round "Earnings per share" to 2 decimal places.)