- Required Information C4 2 Algo From Recording Transactions Including Adjusting Journal Entries To Preparing Financia 1 (212.44 KiB) Viewed 49 times
Required information C4-2 (Algo) 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, Incorporated) on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (the amounts are rounded to thousands of dollars to simplify): 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 Debit $ 4 4 11 0 68 24 0 Credit $ 7 8 6 0 0 0 0 83 7 0 0 0 0 0 $ 111 $ 111 Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $7. c. Issued additional shares of common stock on April 3 for $31. 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. g. Signed a $30 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $176 on December 8, including $48 on credit and $128 collected in cash. i. Recognized salaries and wages expense on December 9, $93 paid in cash. j. Collected accounts receivable on December 10, $32. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $8. 1. Supplies counted on December 31, 2021, $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, $11. p. Income tax for the year was $9. It will be paid in 2022.
3. Prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.) Account Titles Cash Accounts Receivable Supplies Land H & H TOOL, INCORPORATED Unadjusted Trial Balance At December 31, 2021 (in thousands) Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Interest Expense Income Tax Expense Totals $ $ Debit 82 4 7 9 130 $ Credit 0
Journal entry worksheet < 1 2 Transaction I. 3 Note: Enter debits before credits. Record entry Record the adjusting entry for supplies counted on December 31, 2021 for $11. 4 Supplies Expense Supplies 5 General Journal Clear entry 6 Debit 28 Credit 28 View general journal
5. Prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) Cash Accounts Receivable Supplies Land Account Titles H & H TOOL, INCORPORATED Adjusted Trial Balance 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 Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Total (in thousands) $ Debit 0 $ Credit 0
Prepare an income statement. (Enter your answers in thousands of dollars.) H & H TOOL, INCORPORATED Income Statement (in thousands) 0 0
Prepare the statement of retained earnings. (Enter your answers in thousands of dollars.) H & H TOOL, INCORPORATED Statement of Retained Earnings (in thousands) Balance, January 1, 2021 Balance, December 31, 2021 $ 0
Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.) H & H TOOL, INCORPORATED Balance Sheet Equipment Software (in thousands) $ < Req 6B 0 0 0 0 Req 6C > $ 0 0 0
7. Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) View transaction list Journal entry worksheet < 1 Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transaction A Record entry General Journal Clear entry Debit Credit View general journal
Required: T accounts. Enter beginning balances and post journal entries from Part 2, the adjusting journal entries from Part 4, and the closing entry from Part 7. (Enter your answers in thousands of dollars.) Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Cash Supplies Equipment Software Accounts Payable Credit Income Tax Payable Credit Credit Salaries and Wages Payable Credit Credit Credit Credit Beginning Balance Ending Balance Beginning Balance Debit Ending Balance Ending Balance Debit Beginning Balance Debit Ending Balance Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Accumulated Depreciation Debit Beginning Balance Accumulated Amortization Accounts Receivable Land Notes Payable (short-term) Debit Interest Payable Common Stock Credit Credit Credit Credit 0 Credit Credit Credit
Debit Beginning Balance Ending Balance Ending Balance Salaries and Wages Expense Debit Beginning Balance Debit Beginning Balance Ending Balance Retained Earnings Debit Beginning Balance Ending Balance 0 Amortization Expense 0 Interest Expense Credit 0 Credit Credit Credit Beginning Balance Ending Balance Debit Debit Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Ending Balance Debit Beginning Balance Service Revenue Depreciation Expense 0 Income Tax Expense 0 Supplies Expense 0 Credit 0 Credit Credit Credit
Required: 8. Prepare a post-closing trial balance. (Enter your answers in thousands of dollars.) H & H TOOL, INCORPORATED Post-Closing Trial Balance Account Titles Cash Accounts Receivable Supplies Land Retained Earnings Dividends Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock (in thousands) Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Totals Debit 0 Credit 0
Req 9A Req 9B Net Income Net Profit Margin Req 9C How much net income did H & H Tool, Incorporated, generate during 2021? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Margin" to 1 decimal place.) %
Req 9A Req 9B Req 9C Is the company financed primarily by liabilities or stockholders' equity? OStockholders' Equity OLiabilities
Complete this question by entering your answers in the tabs below. Req 9A Req 9B Numerator Denominator Req 9C What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio