FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Brothers Herm and Steve Hargenrater began operations of their tool and die shop (H & H Tool) on January 1, 1987, in Meadville, PA. The annual reporting period ends December 31. Assume that the
| H & H Tool Trial Balance on January 1, 2023 (dollars in millions, except par value) |
||
| Debit | Credit | |
|---|---|---|
| Cash | 9 | |
| 8 | ||
| Supplies | 31 | |
| Land | ||
| Equipment | 98 | |
| 17 | ||
| Other noncurrent assets (not detailed to simplify) | 12 | |
| Accounts payable | ||
| Wages payable | ||
| Interest payable | ||
| Dividends payable | ||
| Income taxes payable | ||
| Long-term notes payable | ||
| Common stock (8 million shares, $0.50 par value) | 5 | |
| Additional paid-in capital | 100 | |
| 36 | ||
| Service revenue | ||
| Depreciation expense | ||
| Supplies expense | ||
| Wages expense | ||
| Interest expense | ||
| Income tax expense | ||
| Miscellaneous expenses (not detailed to simplify) | ||
| Totals | 158 | 158 |
Transactions during 2023 follow. All dollars are in millions, except per share amounts:
- Borrowed $24 cash on a 5-year, 10 percent note payable, dated March 1, 2023.
- Sold 6 million additional shares of common stock for cash at $1 market value per share on January 1, 2023.
- Purchased land for a future building site; paid cash, $23.
- Earned $339 in revenues for 2023, including $69 on credit and the rest in cash.
- Incurred $109 in wages expense and $45 in miscellaneous expenses for 2023, with $40 on credit and the rest paid in cash.
- Collected accounts receivable, $44.
- Purchased other noncurrent assets, $18 cash.
- Purchased supplies on account for future use, $43.
- Paid accounts payable, $42.
- Declared cash dividends on December 1, $24.
- Signed a three-year $49 service contract to start February 1, 2024.
- Paid the dividends in (j) on December 31.
Data for
- Supplies counted on December 31, 2023, $34.
- Depreciation for the year on the equipment, $19.
- Interest accrued on notes payable (to be computed).
- Wages earned by employees since the December 24 payroll but not yet paid, $21.
- Income tax expense, $18, payable in 2024
Transcribed Image Text:Problem i
Requirement
General
Journal
Balance, January 1, 2023
Balance, December 31, 2023
28
General
Ledger
X
Trial Balance
Use the drop-downs to select the accounts that should be properly included on the sta
equity and enter the appropriate amounts.
Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in mill
example, 5 million should be entered as 5 rather than 5,000,000).
Common
Stock
Income
Statement
H & H TOOL
Statement of Stockholders' Equity
For the Year Ended December 31, 2023
Additional
Paid-in
Capital
$
- ♫
0 $
Income Statement
Statement
of SE
W
0 $
Saved
Retained
Earnings
Prev
P
D
Balance
Sheet
Total
Stockholders'
Equity
$
0 $
1 of 1
Balance Sheet
Stmt of
Cash Flow
MacBook Pro
O
0
O
0
0
0
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