Required information Brothers Mike and Tim Hargerrater 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: ToolInc. Trial Balance on January 1, 2020 Debit Cash Credit 10, Accounts receivable 9.00 Supplies 24, Land Equipment 91, Acelated depreciation (on equipment Other noncurrent ans (not detailed to simplity) 10,000 5, Accounts payable Wage payable Interat payable Dividenda payable Income taxes payable Long-term not payable Cene stock 10, do shares, $.50 par value) Additional paid in capital 5.000 93. DO Retained entninga 31,00 Service Tave Depreciation expand Supplies experte Wages expande Interat expen Income tax axes Miscellaneous expenses (not detailed to simplity) Total 139,00 139,00 Transactions during 2020 follow: a. Borrowed $15,000 cash on a 5 year. 8 percent nate payable, dated March 1, 2020. b. Purchased land for a future building site: paid cash $16.000. s. Earned $285,000 in revenues for 2020. including $62.000 on credit and the rest in cash. d. Sold 6.000 additional shares of capital stock for cash at $1 market value per share on January 1, 2020 e. Incurred $102,000 in wages experse and $38,000 in miscellaneous expenses for 2020, with $33,000 on credit and f. Collected accounts receivable $37,000. 9. Purchased other assets, $24,000 cash h. Purchased supplies on account for future use, $36,000. 1. Pald accounts payable $35.000 J. Signed a three-year $42.000 service contract to start February 1, 2021. k. Declared cash dividends on December 1, $34,000, which were paid by December 31. Data for adjusting entries: 1. Supplies counted on December 21, 2020, $27.000 m. Depreciation for the year on the equipment, $12,000. n. Interest accrued on notes payable to be computed). o. Wages earned by employees since the December 24 payroll but not yet paid, $14,000. p. Income tax expense, $11000 payable in 2021 Required: 1. Prepare journal entries for transactions (a) through ( (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction Journal entry worksheet Record the borrowing of $15,000 cash on a five-year note payable dated March 1, 2020. Credit Nota: Enter debit before credits Transaction General Journal Cash Notes payable, logom Deba 15,000 15,000 Record entry Char entry View general Journal View transactions Journal entry worksheet 3 6 7 ... 12 > Record the purchase of land for future building site, paid cash, $15,000. Note: Enter dubits before credits Transaction Land General Journal Debit Credit 16,000 16,000 Record entry Clear entry View general Journal View transaction Journal entry worksheet B... 12 > Record the entry for revenues for 2020, $285,000, including $52,000 on credit and the rest in cash. Nota: Enter debits before credits Transaction General Journal Credit Debit 233,000 62,000 Accounce Service 285,000 Record entry Clear entry View general Journal View transaction Journal entry worksheet 6 7 8 ..... 12 Record the issuance of 5,000 additional shares for cash at $1 market value per share on January 1, 2020. Note: Enter dubits before credits Transaction General Journal Cash Additional paid in capite Debt Credit 6,000 6,000 Record entry Clear entry View general Journal View transactionat Journal entry worksheet 6 7 ..... 12 Record the incurred $102,000 in wages expense and $38,000 in miscellaneous expenses for 2020, with $33,000 on credit and the rest paid in cash. Nota: Enter debits before credits Transaction General Journal Cash Accounts payable Debit Credit Record entry Clear entry View general journal View transaction Journal entry worksheet Record the collection of accounts receivable, $37,000. Nota: Enter debit before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal View transaction Journal entry worksheet ..... ... 12 > Record the purchase of other assets, $24,000 cash. Nota: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal View transaction Journal entry worksheet Record the purchase of supplies on account for future use, $35,000 Nota: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal Journal entry worksheet Record the income tax expense, $11,000, payable in 2021. Note: Enter debits before credits. Transaction General Journal Debit Credit p. Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Income Stmt of Statement Stockholders Balance Sheet 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 0 Other item: Eamings per share Complete this question by entering your answers in the tabs below. Income Stmt of Statement Stockholders Balance Sheet Equity Prepare an statement of stockholders' equity. H&H TOOL, INC. Statement of Stockholders' Equity For the Year Ended December 31, 2020 Common Additional Paid in Stock Capital Retained Earnings Total Stockholders' Equity $ 0 Balance, January 1, 2020 0 0 0 Balance, December 31, 2020 0 Income Stmt of Stockholders Balance Sheet Statement Equity Prepare an balance sheet. (Items to be deducted must be indicated with a minus sign.) H&H TOOL, INC. Balance Sheet At December 31, 2020 Assets Liabilities Current assets: Current liabilities: Total current assets 0 Total current liabilities 0 Property, plant and equipment: Total liabilities 0 Stockholders' equity Net property, plant and equipment 0 0 Total stockholders' equity Total liabilities and stockholders' equity Total assets 0 0 5. Identify the type of transaction for (a) through (k) for the statement of cash flows, and the direction and amount of the effect. (List cash outflows as negative amounts. For transactions with no effect, choose "No effect".) Transaction Type of Effect on Cash Flows Direction and Amount of Effect a. b. C. d. e. f. g. h. i. j. k(1). k(2). Record the December 31, 2020, closing entry. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2020 Record entry Clear entry View general journal 3. Post the journal entries for transactions (a) through and adjusting entries for transactions through to the respective T- Accounts. Cash Accounts Receivable Beg bal Beg bal Endbal End. bal Supplies Land Beg bal Beg bal End bal End. bal Equipment | Accumulated Depreciation Beg bal Beg bal End. bal | End hal Other Assets Accounts Payable Beg bal Beg bal End. bal End bal Income Tax Payable Dividends Payable Beg bal Beg bal End. bal End. bal Wagas Payable Interest Payable Beg bal Beg bal End. bal End. bal LT Notes Payable Common Stock Beg bal Beg bal End. bal End. bal Additional Pain Capital Retained Earnings Beg bal Beg. bal Endbal End. bal . Service Revenue Depreciation Expense Beg bal Beg bal Endbal End. bal. Income Tax Expense Interest Expense Beg bal Beg bal. Endbal Endbal 1 Supplies Expense Wages Expense Beg bal Beg bal. End. bal End. bal Remaining Expenses Beg bal Endball 7-a. Compute the current ratio for 2020. (Round your answer to 2 decimal places.) 7-b. Compute the total asset turnover ratio for 2020. (Round your answer to 2 decimal places.) 7-c. Compute the net profit margin ratio for 2020. (Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).) Ratio a. Current ratio b. Total asset turnover C. Net profit margin %