Equipes Required information COMP4-1 (Algo) Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratio Analysis LO4-1, 4-2, 4-3, 4-4 (IRT) 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: 1. Tool, Inc. Prial Dalance on January 1, 2020 Dabis Credit 6,000 Accounts receivable 5,000 Supplies 20, Land 95,00 Accumulated depreciation (on equipment 14,00 Other soncurentats (not detailed to implity) 9, Acconta payable Hape payable Interest payable Dividenda payable Income taxes payable Long-term notex payable Cascatock (10,000 shares, $.50 par value) 5. DO Additional paid in capital 97, Butassed aninge 27, Service reve Depreciation espana Supplies expande Wages open Interest expense Income tax expense Miscellaneous expenses (not detailed to simplity) Total 143,00 143, DDO Transactions during 2020 follow. a. Borrowed $12,000 cash on a 5 year, 10 percent note payable, dated March 1, 2020. b. Purchased land for a future building site; paid cash $20,000. c. Earned $216.000 in revenues for 2020, including S66,000 on credit and the rest in cash. d. Sold 6.000 additional shares of capital stock for cash at $i maricet value per share on January 1, 2020. e. Incurred $106,000 in wages expense and $42,000 in miscellaneous expenses for 2020, with $37,000 on credit and the rest paid in cash. f. Collected accounts receivable $41000. 9. Purchased other assets, $15,000 cash. h. Purchased supplies on account for future use, $40,000. I. Paid accounts payable, $37,000. J. Signed a three-year $46,000 service contract to start February 1 2021. k. Declared cash dividends on December 1. $21,000, which were paid by December 31. Data for adjusting entries: 1. Supplies counted on December 31, 2020, $31,000. m. Depreciation for the year on the equipment, $16,000. n. Interest accrued on notes payable to be computed). a. Wages earned by employees since the December 24 payroll but not yet paid, $18,000. p. Income tax expense, $15,000, payable in 2021 COMP4-1 Part 4 4. Prepare an income statement (including earnings per share), statement of stockholders' equity, and balance sheet. (For the Statement of Stockholders' Equity and Balance Sheet only, items to be deducted must be indicated with a minus sign. Round "Earnings per share" to 2 decimal places.) Complete this question by entering your answers in the tabs below. Stmt of Income Stockholders Balance Sheet Statement Equity Prepare an income statement (including earnings per share). (Round "Earnings per share" to 2 decimal places.) H & H TOOL, INC. Income Statement For the Year Ended December 31, 2020 Operating revenues: Operating expenses: Total operating expenses Other item: Earnings per share
