Brothers Mike and Tim Horgen began operations of their tool and die shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2017, fo Credit Debit 4,000 3,000 12,000 79,000 9,000 8.000 Account Titles Cash Accounts receivable Supplies Land Equipment Accumulated depreciation (on equipment Other assets (not detailed to simplify Accounts payable Wages payable Interest payable Income taxes payable Long-term notes payable Common stock (12,000 shares. $.50 par value) Additional paid in capital Retained earnings Service revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Remaining expenses (not detailed to simplity) Totals 6,000 81,000 10,000 106,000 106,000 Transactions during 2017 follow. a Borrowed $20.000 cash on a 5-year, 12 percent note payable, dated March 1, 2017 Purchased land for a future building site on March 15, 2017 paid cash, $12,000. Eamed S223.000 in revenue. Transactions dated August 30, 2017 Including $50,000 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, 2017 e curred S116,000 in remaining expenses for 2017. Invoices dated October 15, 2017, including $21,000 on credit and the rest paid in cash. Colected accounts receivables on November 10, 2017, $35.000 g. Purchased other assets on November 15, 2017, 512,000 cash. h. Purchased supplies on account for future use on December 1, 2017. $24.000 Paid accounts payable on December 15, 2017, 522,000 Signed a three-year 530,000 service contract on December 17, 2017 to start February 1, 2018 k Declared and paid cash dividends on December 20, 2017, $22,000, Date for acusting entries Supples counted on December 31, 2017. $15,000. Depreciation for the year on the equipment. $11,000 terest eccrued on notes payable to be computed) Wages eamed by employees since the December 24 payroll but not yet paid $14.000 Income tax expense, $10,000 payable in 2018. eztomneducation.com/px Cash Beg bal (C) Accounts Receivable 3,000 50,000 35,0000 Beg bal (a) (C) (d) (0 4,000 20.000 173,000 6,000 12,000 (b) 95,000e) 12,000 (9) 22,000 0 22,000 () 35,000 End, bal. 18.000 End, bal 75,000 Land Supplies 12,000 24,000 21,0000 Beg bal (h) 0 Beg. bal (b) 12,000 End, bal 15,000 End bal 12,000 Equipment 79,000 Beg bal Beg bal Accumulated Depreciation 9,000 11.000 (m) End bal. 79,000 End, bal 20.000 Accounts Payable Other Assets 8.000 0 Beg bal (9) Beg bal (0) 12,000 22,000 21,000 (e) 24,000 (h) 23,000 End, bal 20.000 End bal Wages Payable Beg. bal. Income Tax Payable 0 10.000) Beg bal. 0 14,000 (0) 10,000 End, bal 14.000 End, bal Beg bal Interest Payable 0 2,000 (n) Beg bal LT Notes Payable 0 20,000 (a) End, bal 2,000 End, bal 20,000 Common Stock Additional Paid-in Capital Beg. bal Common Stock 6,000 3,000 Beg. bal. Additional Paid-in Capital 81,000 3,000 (d) (d) End, bal 9,000 End, bal 84.000 Service Revenue Beg bal (K) Beg bal. 0 Is Retained Earnings 10,000 22,000 X 12,000 8 X 223,000 (c) X + End, bal End, bal. 223,000 Depreciation Expense 0 Income Tax Expense 0 Beg bal (m) Beg bal. 11,000 X X (p) 10,000 X > X End, bal 11,000 End bal. 10,000 Interest Expense Beg bal 0 Beg. bal. 0) Supplies Expense 0 21,000 2,400 X X X > X X 8 X End, bal 2,400 End bal 21,000 Wages Expense Beg bal. 0 Remaining Expenses 0 116.000 Beg. bal. (e) (0) 14,000 % X > X x x End bal. 14,000 End, bal 116,000 Red text indicates no response was expected in a cell or a formula-based calculation is incorrect no points deducted. 4. Prepare an income statement (including earnings per share), statement of stockholders' equity and balance sheet (For the Statement of Stockholders Equity and Balance 51 decimal places.) H&H TOOL, INC. Income Statement For the Year Ended December 31, 2017 Operating revenues Service revenue 223,000 Operating expenses Depreciation expense Supplies expense Wages expense Remaining expenses 11,000 21.000 14,000 116,000 Total operating expenses Operating Income Other item 162,000 61,000 > Interest expense > 2,000 Pretax income Income tax expense 59.000 10,000 $ 49.000 Net Income Earnings per share S 4.08 % H & H TOOL, INC. Statement of Stockholders' Equity For the Year Ended December 31, 2017 Additional Common Stock Paid in Capital X x Retained Earnings Total Stockholders Equity X $ 0 0 Balance January 1, 2017 * * * * 3 0 0 X Balance, December 31, 2017 xs Red tect indicates no response was expected in a celor a formul-based calcuation is incorrect na pointe deducted 0 Assets Current assets: Cash Accounts receivable Supplies Total current assets Property, plant and equipment: Land Equipment Accumulated depreciation Other assets H & H TOOL, INC. Balance Sheet At December 31, 2017 Liabilities Current liabilities: $ 75,000 Accounts payable $ 23,000 18,000 Wages payable 14,000 15,000 Interest payable 2,000 Income taxes payable 10,000 108,000 Total current liabilities 49,000 Long-term debt > 20,000 12,000 79,000 Total liabilities 69,000 (20,000) 20,000 Stockholders' equity Common stock $ 9,000 91,000 Additional paid-in capital 84,000 Retained earnings 37,000 >>> Net property, plant and equipment X X 130,000 Total stockholders' equity Total assets $ 199,000 Total liabilities and stockholders' equity *sed to indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted. $ 199,000 5. Identify the type of transaction for (a) through (K) for the statement of cash flows (O for operating. I for investing, F for financing), and the direction and amount of the eff Direction Type of and Transaction Effect on Cash Flows Amount of Effect a F 20.000 b 1 12,000 % C o 223,000 % d F 6,000 e. O (116,000) f O 35,000 g 1 12,000 X h 1 X 24,000 i F x 22,000 $ i 30,000 22,000 X *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect, no points deducted 5. Prepare the closing entry on December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No General Journal Debit Credit Date December 31, 201 1 X $ * $ x $ X $