The pre-closing balances in the T-accounts of Hook M Horns Company at the end of the third year of operations.

December 31. 2003. follow. The 2003 adjusting entries are identified by letters.

Required: 1. Develop three 2003 trial balances for Hook M Homs Company using the following format: 2. Write an explanation for each adjusting entry for 2003. 3. Record the closing journal entries. 4. What was the average income tax rate for 2003? 5. What was the average issue (sale) price per share of the capital stock?

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Cash Bal. 20,000 Notes Payable 8% Contributed Capital (8,000 shares) Bal. 10,000 Bal. 56,000 Maintenance Supplies Interest Payable Retained Earnings Bal, 500 (a) Service Equipment Bal. 90,000 300 (b) 800 Bal. 9,000 Income Taxes Payable Service Revenue (A 13,020 (c) 6,000 Bal. 220,000 Accumulated Depreciation, Wages Payable Expenses Service Equipment (e) 500 Bal. 160,000 Bal. 18,000 (a) 300 (d) 9,000 (b) 800 (d) 9,000 (e) 500 (A 13,020 Remaining Assets Unearned Revenue Bal. 42,500 (c) 6,000