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 ToolTrial Balance on January 1, 2023(dollars in millions, except par value) DebitCreditCash9 Accounts receivable8 Supplies31 Land Equipment98 Accumulated depreciation (on equipment) 17Other 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) 5Additional paid-in capital 100Retained earnings 36Service revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals158158Transactions 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 adjusting entries: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, $18, payable in 2024 Problem iRequirementGeneralJournalBalance, January 1, 2023Balance, December 31, 202328GeneralLedgerXTrial BalanceUse the drop-downs to select the accounts that should be properly included on the staequity and enter the appropriate amounts.Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millexample, 5 million should be entered as 5 rather than 5,000,000).CommonStockIncomeStatementH & H TOOLStatement of Stockholders' EquityFor the Year Ended December 31, 2023AdditionalPaid-inCapital$- ♫0 $Income StatementStatementof SEW0 $SavedRetainedEarningsPrevPDBalanceSheetTotalStockholders'Equity$0 $1 of 1Balance SheetStmt ofCash FlowMacBook ProO0O000Next

Financial statements are those statements and reports which are prepared at the end of the period…

Answered: Balance, January 1, 2023 Balance,…

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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Question

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:

	Debit	Credit
H & H Tool Trial Balance on January 1, 2023 (dollars in millions, except par value)
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:

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 adjusting entries:

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

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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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