Balance, January 1, 2023 Balance, December 31, 2023 H & H TOOL Statement of Stockholders' Equity For the Year Ended December 31, 2023 Additional Paid-in Capital Common Stock $ 0 $ 0 $ Retained Earnings 0 Total Stockholders' Equity $ $ 0 0 O 0 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 trial balance on January 1, 2023, was as follows:

H & H Tool
Trial Balance on January 1, 2023
(dollars in millions, except par value)
  Debit Credit
Cash 9  
Accounts receivable 8  
Supplies 31  
Land    
Equipment 98  
Accumulated depreciation (on equipment)   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
Retained earnings   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:

  1. Borrowed $24 cash on a 5-year, 10 percent note payable, dated March 1, 2023.
  2. Sold 6 million additional shares of common stock for cash at $1 market value per share on January 1, 2023.
  3. Purchased land for a future building site; paid cash, $23.
  4. Earned $339 in revenues for 2023, including $69 on credit and the rest in cash.
  5. Incurred $109 in wages expense and $45 in miscellaneous expenses for 2023, with $40 on credit and the rest paid in cash.
  6. Collected accounts receivable, $44.
  7. Purchased other noncurrent assets, $18 cash.
  8. Purchased supplies on account for future use, $43.
  9. Paid accounts payable, $42.
  10. Declared cash dividends on December 1, $24.
  11. Signed a three-year $49 service contract to start February 1, 2024.
  12. Paid the dividends in (j) on December 31.

Data for adjusting entries:

  1. Supplies counted on December 31, 2023, $34.
  2. Depreciation for the year on the equipment, $19.
  3. Interest accrued on notes payable (to be computed).
  4. Wages earned by employees since the December 24 payroll but not yet paid, $21.
  5. Income tax expense, $18, payable in 2024
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
Next
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 Next
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