COMP4-1 (Static) Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratio Analysis LO4-1, 4-2, 4-3, 4-4 (GL) Brothers Mike and Tim Hargenrater 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: H & H Tool, Inc. Trial Balance on January 1, 2020 Debit Credit Cash 6,000 Accounts receivable 5,000 Supplies 13,000 Land Equipment 78,000 Accumulated depreciation (on equipment) 8,000 Other noncurrent assets (not detailed to simplify) 7,000 Accounts payable Wages payable Interest payable Dividends 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 Miscellaneous expenses (not detailed to simplify) Totals 109,000 109,000 Transactions during 2020 follow: a. Borrowed $15,000 cash on a five-year, 8 percent note payable, dated March 1, 2020. b. Purchased land for a future building site; paid cash, $13,000. c. Earned $215,000 in revenues for 2020, 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, 2020. e. Incurred $89,000 in wages expense and $25,000 in miscellaneous expenses for 2020, with $20,000 on credit and the rest paid in cash. f. Collected accounts receivable, $34,000. g. Purchased other assets, $15,000 cash. h. Purchased supplies on account for future use, $27,000. 1. Paid accounts payable, $26,000. J. Signed a three-year $33,000 service contract to start February 1, 2021. k. Declared cash dividends on December 1, $25,000, which were paid by December 31. (Hint: Prepare two entries.] Data for adjusting entries: 1. Supplies counted on December 31, 2020, $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 pald, $16,000. p. Income tax expense, $11,000, payable in 2021. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Analysis Prepare journal entries for transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 March 01, 2020 15,000 Long-term notes payable 15,000 Cash 2 March 15, 2020 Land 13,000 Cash 13,000 3 > August 30, 2020 Accounts receivable Cash 52.000 163,000 Service revenue 215,000 4 4,000 January 01, 2020 Cash Common stock Additional paid-in capital 2.000 2,000 5 89,000 25,000 October 15, 2020 Wages expense Miscellaneous expenses Cash Accounts receivable 94,000 20,000 6 34,000 November 10, 202 Cash Accounts receivable 34,000 7 15,000 November 15, 202 Other assets Cash 15,000 7 15,000 November 15, 2021 Other assets Cash 15,000 8 27,000 December 01, 202, Supplies Cash >lx 27,000 9 9 26,000 December 15, 2021 Accounts payable Cash 26,000 10 December 17, 202 No journal entry required 11 25,000 December 01, 202 Dividends payable Cash x 25,000 12 25,000 December 31, 202 Dividends payable Cash ws 25,000 13 22,000 December 31, 202 Supplies expense Supplies 14 10,000 December 31, 202 Depreciation expense Accumulated depreciation-equipment 10,000 15 1,000 December 31, 202 Interest expense Interest payable 1,000 16 16,000 December 31, 202, Wages expense Wages payable 16,000 17 11,000 December 31, 202 Income tax expense Income taxes payable slo 11.000 18 December 31, 202 No journal entry required X Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Analysis Use the drop-downs below to select the accounts that should be properly included on the income statement. Also, compute earnings per share. The unadjusted or adjusted balances will appear for each account, based on your selection in the drop-downs. (Round your Earnings per share answer to 2 decimal places.) Adjusted H & H Tool, Inc. Income Statement For the Year Ended December 31, 2020 Operating revenues: Service revenue 215,000 105,000 25,000 22.000 10,000 Operating expenses Wages expense Miscellaneous expenses Supplies expense Depreciation expense Income tax expense Total operating expenses Operating income Other item: Interest expense 11,000 173,000 > 42.000 > 1,000 > Pretax income 41,000 Income tax expense Net income Earnings per share 11,000 30.000 S 0.84 Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Analysis Use the drop-downs to select the accounts that should be properly included on the statement of stockholders' equity and enter the appropriate amounts. (Amounts to be deducted should be indicated with a minus sign.) H & H TOOL, INC. Statement of Stockholders' Equity For the Year Ended December 31, 2020 Additional Common Retained Total Paid-in Stock Stockholders' Capital Earnings Equity Balance, January 1, 2020 S 4,000 S 8,000 XS 17,000 $ 29,000 Add: Additional stock issuance 2.000 2.000 4,000 Add: Net income 41,000 41,000 Add: Dividends declared (25,000) (25,000) Balance, December 31, 2020 S 6,000 IS 10.000 S 33,000 $ 49,000 Income Statement Balance Sheet > Answer is not complete. General General Requirement Income Statement of Trial Balance Journal Ledger Statement SE Balance Sheet Analysis Use the drop-downs below to select the accounts that should be properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection in the drop-downs. (Include all balance sheet accounts, even those with zero balances.) Adjusted H&H TOOL, INC. Balance Sheet At December 31, 2020 Assets Liabilities Current assets: Current liabilities: Cash Accounts payable Accounts receivable 3.000 Interest payable 1,000 Supplies 40.000 Wages payable 16,000 Income taxes payable 11,000 OIOIOIO 43,000 28,000 Total current liabilities Long-term notes payable 15,000 Total current assets Property, plant and equipment: Land Equipment Other assets 13,000 lolol 78,000 Total liabilities 43,000 22.000 Stockholders' equity 6,000 Common stock Retained earnings Net property, plant, and equipment 113,000 17,000 23,000 Total assets $ 156,000 Total stockholders' equity Total liabilities and stockholders' equity Analysis > $ 66,000 Statement of SE Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Analysis Compute the applicable ratios shown below for 2020. (Round your answers for a. and b. to 2 decimal places. Enter your answer for c. as a whole percentage rounded to one decimal place (i.e. 0.288 should be entered as 28.8).) a. Compute the current ratio for 2020. Current ratio 1.84 b. Compute the total asset turnover ratio for 2020. Total asset turnover 1.46 X c. Compute the net profit margin ratio for 2020. Net profit margin 19.1 %