Question 9
Required Information [The following information applies to the questions displayed below) Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows the amounts are rounded to thousands of dollars to simplify) Account Titles Debit Credit Cash $3 Accounts Receivable 5 Supplies 12 Land e Equipment 55 Accumulated Depreciation 56 Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals 594 $94 19 5 5 oo o o o o e 70 Transactions and events during 2018 (summarized in thousands of dollars) follow. a. Borrowed 512 cash on March 1 using a short-term note, b. Purchased land on March 2 for future building site: pald cash $9. cissued additional shares of common stock on Apni 3 for $29. d. Purchased software on July 4, 510 cash e Purchased supplies on account on October 5 for future use. $18 Pald accounts payable on November 6. $13. 9. Signed a $25 service contract on November 7 to start February 1, 2019 h. Recorded revenues of $150 on December 8, including $35 on credit and $115 collected in cash 1. Recognized salaries and wages expense on December 9, $80 paid in cash. J. Collected accounts receivable on December 10, $19. Data for adjusting journal entries as of December 31 Data for adjusting Journal entries as of December 31: k Unrecorded amortization for the year on software, $5. 1. Supplies counted on December 31, 2018, $10 m. Depreciation for the year on the equipment. $6. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet pald or recorded, $12 p. Income tax for the year was $8. It will be paid in 2019. 9-6. How much net income did H & H Tool, Inc., generate during 2018? What was its net profit margin? 9.b. Is the company financed primarily by liabilities or stockholders' equity? 9.c. What is its current ratio? Complete this question by entering your answers in the tabs below. Reg 9A Reg 98 Reg 9C How much net income did H & H Tool, Inc., generate during 2018? What was its net profit margin? (Enter "Net Income" thousands of dollars. Round "Net Profit Margin" to 1 decimal place.) in Net Income Net Profit Margin % ROSA Req9B > Complete this question by entering your answers in the tabs below. Reg 9A Reg 9B Reg 90 Is the company financed primarily by liabilities or stockholders' equity? Stockholders' Equity Liabilities Complete this question by entering your answers in the tabs below. Reg 9A Reg 9B Reg 9C What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Numerator Denominator
