Required information C4-2 From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, LO 4-5, LO 4-6) (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): Debit Credit 4 11 0 59 $ 7 14 Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation 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 6 6 0 0 0 0 66 7 $92 $92 Transactions and events during 2018 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on March 1 using a short-term note. b. Purchased lani on March 2 for future building site; paid cash, $7. c. Issued additional shares of common stock on April 3 for $25. d. Purchased software on July 4, $12 cash. e. Purchased supplies on account on October 5 for future use, $17. f. Paid accounts payable on November 6, $14. 9. Signed a $30 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $158 on December 8, including $39 on credit and $119 collected in cash. 1. Recognized salaries and wages expense on December 9, $84 paid in cash. j. Collected accounts receivable on December 10, $23. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $6. 1. Supplies counted on December 31, 2018, $11. m. Depreciation for the year on the equipment, $7. n. Interest of $2 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $12. p. Income tax for the year was $9. It will be paid in 2019. C4-2 Part 9 9-a. 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 9A Req 98 Req 9C How much net income did H & H Tool, Inc., generate during 2018? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.) $ 29 Net Income Net Profit Margin 16.5 % % Reg Req9B C4-2 Part 9 9-a. 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 9A Req 98 Req9c Reg DC What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Current Assets Current Liabilities $ Numerator Denominator 113 2.57 $ 44
