Check my COMP4-1 (Static) Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratio Analysis L04-1, 4-2, 4-3, 4-4 (GL) 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: HGH Tool, Inc. Trial Balance on January 1, 2020 Credit Debit 6,000 5,000 13,000 78,000 8, see 7.000 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 Long-term notes payable Common stock (8,000 shares, $0.50 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals 4,000 80,000 17,000 109,000 109,000 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. PARA 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. t. Collected accounts receivable, $34,000. 9. Purchased other assets, $15,000 cash. h. Purchased supplies on account for future use, $27,000 1. 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: I Supplies counted on December 31, 2020, $18,000. n. 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. General General Income Statement Balance Requirement Stmt of Journal Trial Balance Ledger Statement of SE Sheet Cash Flows Analysis Prepare journal entries for transactions. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list the first account View transaction list Journal entry worksheet 1 8 10 9 11 12 > 13 18 ... Record the adjusting entry for supplies counted on December 31, 2020, $18,000. Note: Enter debits before credits. Debit Credit Transaction General Journal December 31, 2020 Supplies expense Supplies Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 12 11 13 14 15 16 17 18 BE Record the closing entry. Note: Enter debits before credits. General Journal Debit Credit Transaction December 31, 2020 Record entry Clear entry View general journal