Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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: Credit 8,000 H & H Tool, Inc. Trial Balance on January 1, 2020 Debit Cash 6,000 Accounts receivable 5,000 Supplies 13,000 Land Equipment 78,000 Accumulated depreciation (on equipment) Other noncurrent assets (not 7,000 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 109,000 4,000 80,000 17,000 109,000 Transactions during 2020 follow: a. Borrowed $15,000 cash on a five-year, 8 percent note payable, dated March 1, 2020. 2. 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. 3. Purchased other assets, $15,000 cash. 1. Purchased supplies on account for future use, $27,000. i. Paid accounts payable, $26,000. j. Signed a three-year $33,000 service contract to start February 1, 2021. <. declared cash dividends on december which were paid by prepare two entries. data for adjusting entries: supplies counted depreciation the year equipment interest accrued notes payable be computed wages earned employees since payroll but not yet income tax expense in use drop-downs below to select accounts that should prope compute earnings per share. unadjusted or adjusted balances will appear drop-downs. your share answer decimal places. h tool inc. statement ended operating revenues: expenses: total expenses other item: net properly included of stock equity and enter appropriate amounts. deducted indicated with a minus stockholders additional common paid-in capital retained balance january>
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started