[The following information applies to the questions displayed below.]

Brothers Mike and Tim Hargen began operations of their tool and die shop (H & H Tool, Inc.) on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows:

Account Titles	Debit		Credit
Cash	$	6,000
Accounts receivable		5,000
Supplies		13,000
Land
Equipment		78,000
Accumulated depreciation (on equipment)			$	8,000
Other assets (not detailed to simplify)		7,000
Accounts payable
Wages payable
Interest payable
Income taxes payable
Long-term notes payable
Common stock (8,000 shares, $0.50 par value)				4,000
Additional paid-in capital				80,000
Retained earnings				17,000
Service revenue
Depreciation expense
Supplies expense
Wages expense
Interest expense
Income tax expense
Remaining expenses (not detailed to simplify)
Totals	$	109,000	$	109,000

Transactions during 2015 follow:
a.	Borrowed $15,000 cash on a five-year, 8 percent note payable, dated March 1, 2015.
b.	Purchased land for a future building site; paid cash, $13,000.
c.	Earned $215,000 in revenues for 2015, 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, 2015.
e.	Incurred $114,000 in Remaining Expenses for 2015, including $20,000 on credit and the rest paid in cash.
f.	Collected accounts receivable, $34,000.
g.	Purchased other assets, $15,000 cash.
h.	Paid accounts payable, $26,000.
i.	Purchased supplies on account for future use, $27,000.
j.	Signed a three-year $33,000 service contract to start February 1, 2016.
k.	Declared and paid cash dividends, $25,000.
Data for adjusting entries:
l.	Supplies counted on December 31, 2015, $18,000.
m.	Depreciation for the year on the equipment, $10,000.
n.	Interest accrued on notes payable (to be computed).
o.	Wages earned by employees since the December 24 payroll but not yet paid, $16,000.
p.	Income tax expense, $11,000, payable in 2016.

Required:

1.

Prepare journal entries for transactions (a) through (k). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.

Prepare the adjusting entries for transactions (l) through (p). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3.

Post the journal entries for transactions (a) through (k) and adjusting entries for transactions (l) through (p) to the respective T-Accounts.

4.

Prepare an income statement (including earnings per share), statement of stockholders equity, and balance sheet. (For Balance Sheet only, items to be deducted must be indicated with a negative amount. Round "Earnings per share" to 2 decimal places.)

.

Prepare the closing entry on December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

7-a.	Compute the current ratio for 2015. (Round your answer to 2 decimal places.)

7-b.	Compute the total asset turnover ratio for 2015. (Round your answer to 2 decimal places.)

7-c.	Compute the net profit margin ratio for 2015. (Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).)