COMP4-1 (Static) Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratio Analysis LO4-1, 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: H & H Tool, Inc. Trial Balance on January 1, 2020 Debit Credit Cash Accounts receivable Supplies Land Equipment Accumulated depreciation (on equipment) Accounts payable Wages payable Interest payable Dividends payable 6,000 5,000 13,000 78,000 8,000 Other noncurrent assets (not detailed to simplify) 7,000 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. 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. 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. 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. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet 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 View journal entry worksheet No Transaction General Journal 1 March 01, 2020 Cash Short-term notes payable 2 March 15, 2020 Land Cash 3 August 30, 2020 Cash Accounts receivable Service revenue Debit Credit 15,000 15,000 13,000 13,000 163,000 52,000 215,000 4 January 01, 2020 Cash 4,000 Common stock 2,000 Additional paid-in capital 2,000 5 October 15, 2020 Wages expense Cash Accounts payable < Requirement General Ledger > 89,000 Unadjusted General Ledger Account Cash Accounts receivable No. Date Debit Credit Balance No. January 01, 6,000 2020 4 January 01, 2020 4,000 10,000 3 Date January 01, 2020 August 30, 2020 Debit 52,000 March 01, 1 15,000 25,000 2020 March 15, 2 13,000 12,000 2020 August 30, 3 163,000 175,000 2020 + Credit Balance 5,000 57,000 Supplies Land No. Date Debit Credit Balance No. Date Debit Credit Balance January 01, 0 13,000 2020 2 March 15, 2020 13,000 13,000 No. Date January 01, 2020 Equipment Accumulated depreciation-equipment Debit Credit Balance No. 78,000 Date January 01, 2020 Debit Credit Balance 8,000