Transactions during 2023 follow. All dollars are in millions, except per share amounts: a. Borrowed $15 cash on a five-year, 8 percent note payable, dated March 1, 2023. b. Sold 4 million additional shares of common stock for cash at $1 market value per share on January 1, 2023. c. Purchased land for a future building site; paid cash, $13. d. Earned $215 in revenues for 2023, including $52 on credit and the rest in cash. e. Incurred $89 in wages expense and $25 in miscellaneous expenses for 2023, with $20 on credit and the rest paid in cash. f. Collected accounts receivable, $34. g. Purchased other noncurrent assets, $15 cash. h. Purchased supplies on account for future use, $27. i. Paid accounts payable, $26. j. Declared cash dividends on December 1, $25. k. Signed a three-year $33 service contract to start February 1, 2024. 1. Paid the dividends in () on December 31. Data for adjusting entries (amounts in millions): m. Supplies counted on December 31, 2023, $18. n. Depreciation for the year on the equipment, $10. o. Interest accrued on notes payable (to be computed). p. Wages earned by employees since the December 24 payroll but not yet paid, $16. q. Income tax expense, $11, payable in 2024.
Transactions during 2023 follow. All dollars are in millions, except per share amounts: a. Borrowed $15 cash on a five-year, 8 percent note payable, dated March 1, 2023. b. Sold 4 million additional shares of common stock for cash at $1 market value per share on January 1, 2023. c. Purchased land for a future building site; paid cash, $13. d. Earned $215 in revenues for 2023, including $52 on credit and the rest in cash. e. Incurred $89 in wages expense and $25 in miscellaneous expenses for 2023, with $20 on credit and the rest paid in cash. f. Collected accounts receivable, $34. g. Purchased other noncurrent assets, $15 cash. h. Purchased supplies on account for future use, $27. i. Paid accounts payable, $26. j. Declared cash dividends on December 1, $25. k. Signed a three-year $33 service contract to start February 1, 2024. 1. Paid the dividends in () on December 31. Data for adjusting entries (amounts in millions): m. Supplies counted on December 31, 2023, $18. n. Depreciation for the year on the equipment, $10. o. Interest accrued on notes payable (to be computed). p. Wages earned by employees since the December 24 payroll but not yet paid, $16. q. Income tax expense, $11, payable in 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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closing and
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Transcribed Image Text: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:
Cash
Accounts receivable
Supplies
Land
Equipment
Accumulated depreciation (on equipment)
Other noncurrent assets (not detailed to simplify)
Accounts payable
Wages payable
Interest payable
Dividends payable
H & H Tool
Trial Balance on January 1, 2023
(dollars in millions, except par value)
Income taxes payable
Long-term notes payable
Common stock (8 million shares, $0.50 par value)
Additional paid-in capital
Retained earnings
Service revenue
Depreciation expense
Supplies expense
Wages expense
Interest expense
Income tax expense
Miscellaneous expenses (not detailed to simplify)
Totals
Debit
6
5
13
78
7
109
Credit
8
Transactions during 2023 follow. All dollars are in millions, except per share amounts:
4
80
17
109
Transcribed Image Text:Transactions during 2023 follow. All dollars are in millions, except per share amounts:
a. Borrowed $15 cash on a five-year, 8 percent note payable, dated March 1, 2023.
b. Sold 4 million additional shares of common stock for cash at $1 market value per share on January 1, 2023.
c. Purchased land for a future building site; paid cash, $13.
d. Earned $215 in revenues for 2023, including $52 on credit and the rest in cash.
e. Incurred $89 in wages expense and $25 in miscellaneous expenses for 2023, with $20 on credit and the rest paid in cash.
f. Collected accounts receivable, $34.
g. Purchased other noncurrent assets, $15 cash.
h. Purchased supplies on account for future use, $27.
i. Paid accounts payable, $26.
j. Declared cash dividends on December 1, $25.
k. Signed a three-year $33 service contract to start February 1, 2024.
1. Paid the dividends in () on December 31.
Data for adjusting entries (amounts in millions):
m. Supplies counted on December 31, 2023, $18.
n. Depreciation for the year on the equipment, $10.
o. Interest accrued on notes payable (to be computed).
p. Wages earned by employees since the December 24 payroll but not yet paid, $16.
q. Income tax expense, $11, payable in 2024.
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