Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $12 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $9. c. Issued additional shares of common stock on April 3 for $29. d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18. f. Paid accounts payable on November 6, $13. g. Signed a $25 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $172 on December 8, including $46 on credit and $126 collected in cash. i. Recognized salaries and wages expense on December 9, $91 paid in cash. J. Collected accounts receivable on December 10, $30. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $6. 1. Supplies counted on December 31, 2021, $10. m. Depreciation for the year on the equipment, $6. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $12. p. Income tax for the year was $8. It will be paid in 2022. C4-2 (Algo) Part 6 Required: 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet.
Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $12 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $9. c. Issued additional shares of common stock on April 3 for $29. d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18. f. Paid accounts payable on November 6, $13. g. Signed a $25 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $172 on December 8, including $46 on credit and $126 collected in cash. i. Recognized salaries and wages expense on December 9, $91 paid in cash. J. Collected accounts receivable on December 10, $30. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $6. 1. Supplies counted on December 31, 2021, $10. m. Depreciation for the year on the equipment, $6. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $12. p. Income tax for the year was $8. It will be paid in 2022. C4-2 (Algo) Part 6 Required: 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transactions and events during 2021 (summarized in thousands of dollars) follow:
a. Borrowed $12 cash on March 1 using a short-term note.
b. Purchased land on March 2 for future building site; paid cash, $9.
c. Issued additional shares of common stock on April 3 for $29.
d. Purchased software on July 4, $10 cash.
e. Purchased supplies on account on October 5 for future use, $18.
f. Paid accounts payable on November 6, $13.
g. Signed a $25 service contract on November 7 to start February 1, 2022.
h. Recorded revenues of $172 on December 8, including $46 on credit and $126 collected in cash.
i. Recognized salaries and wages expense on December 9, $91 paid in cash.
j. Collected accounts receivable on December 10, $30.
Data for adjusting journal entries as of December 31:
k. Unrecorded amortization for the year on software, $6.
1. Supplies counted on December 31, 2021, $10.
m. Depreciation for the year on the equipment, $6.
n. Interest of $1 to accrue on notes payable.
o. Salaries and wages earned but not yet paid or recorded, $12.
p. Income tax for the year was $8. It will be paid in 2022.
C4-2 (Algo) Part 6
Required:
6-a. Prepare an income statement.
6-b. Prepare the statement of retained earnings.
6-c. Prepare the balance sheet.
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Information applies to the questions displayed below.J
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
@
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Retained Earnings
Service Revenue
Salaries and Wages Expense
Depreciation Expense
Amortization Expense
Income Tax Expense
Interest Expense
Supplies Expense
Totals
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Transactions and events during 2021 (summarized in thousands of dollars) follow:
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c. Issued additional shares of common stock on April 3 for $29.
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d. Purchased software on July 4, $10 cash.
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