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 6,000 Accounts receivable 5,000 Supplies 13,000 Land Equipment Accumulated depreciation (on equipment) Accounts payable Wages payable Interest payable 78,000 8,000 Other noncurrent assets (not detailed to simplify) 7,000 Dividends payable Income taxes payable Long-term notes payable Common stock (8,8ee shares, $0.58 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 Transactions during 2020 follow: 4,000 80,000 17,000 109,000 109,000 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. Pald 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 General Journal Ledger Trial Balance Statement Income Statement of SE Balance Sheet Stmt of 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 let View journal entry worksheet No Transaction General Journal 1 March 01, 2020 Cash Debit Credit 15,000 Long-term notes payable 15,000 i 2 March 15, 2020 Land 13,000 Cash 13,000 3 August 30, 2020 Cash 183,000 Accounts receivable 52,000 Service revenue 215,000 4 January 01, 2020 Cash 4,000 Common stock 2,000 Additional paid-in capital 2.000 5 October 15, 2020 Miscellaneous expenses 25,000 94,000 ' 8 November 10. Cash 34,000 2020 Accounts receivable 34,000 November 15, 7 2020 Other assets Cash 15,000 15,000 Journal entry worksheet < 5 Record the 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. Note: Enter debits before credits. 18 > Transaction General Journal Debit Credit October 15, 2020 Miscellaneous expenses 25,000 94,000 Record entry Clear entry View general journal < Requirement General Ledger > Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Stmt of Cash Flows Analysis Use the drop-downs below to select the accounts that should be properly included on the income statement. Also, compute earnings per share. The unadjusted or adjusted balances will appear for each account, based on your selection in the drop-downs. (Round your Earnings per share answer to 2 decimal places.) Adjusted H & H Tool, Inc. Income Statement For the Year Ended December 31, 2020 Operating revenues: Operating expenses: Total operating expenses 0 Other item: Net income Earnings per share S 0 < Trial Balance Statement of SE > Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Stmt of Analysis Sheet Cash Flows Use the drop-downs to select the accounts that should be properly included on the statement of stockholders' equity and enter the appropriate amounts. (Amounts to be deducted should be indicated with a minus sign.) H & H TOOL, INC. Statement of Stockholders' Equity For the Year Ended December 31, 2020 Additional Common Stock Paid-in Capital Retained Earnings Total Stockholders' Equity Balance, January 1, 2020 S 0 0 0 0 Balance, December 31, 2020 $ 0 $ 0 $ 0 S 0 < Income Statement Balance Sheet