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: H & H Tool Trial Balance on January 1, 2023 (dollars in millions, except par value) Debit Credit Cash 10 Accounts receivable 9 Supplies 24 Land Equipment 91 Accumulated depreciation (on equipment) 10 Other assets (not detailed to simplify) 5 Accounts payable Wages payable Interest payable Dividends payable Income taxes payable Long-term notes payable Common stock (10 million shares, $0.50 par value) 5 Additional paid-in capital 93 Retained earnings 31 Service revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals 139 139 Transactions during 2023 follow. All dollars are in millions, except per share amounts: a. Borrowed $15 cash on a 5-year, 8 percent note payable, dated March 1, 2023. b. Sold 6 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, $16. d. Earned $285 in revenues for 2023, including $62 on credit and the rest in cash. e. Incurred $102 in wages expense and $38 in miscellaneous expenses for 2023, with $33 on credit and the rest paid in cash. f. Collected accounts receivable, $37. g. Purchased other noncurrent assets, $24 cash. h. Purchased supplies on account for future use, $36. i. Paid accounts payable, $35. j. Declared cash dividends on December 1, $34. k. Signed a three-year $42 service contract to start February 1, 2024. l. Paid the dividends in (j) on December 31. Data for adjusting entries (amounts in millions): m. Supplies counted on December 31, 2023, $27. n. Depreciation for the year on the equipment, $12. o. Interest accrued on notes payable (to be computed). p. Wages earned by employees since the December 24 payroll but not yet paid, $14. q. Income tax expense, $11, payable in 2024.

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 10
Accounts receivable 9
Supplies 24
Land
Equipment 91
Accumulated depreciation (on equipment) 10
Other assets (not detailed to simplify) 5
Accounts payable
Wages payable
Interest payable
Dividends payable
Income taxes payable
Long-term notes payable
Common stock (10 million shares, $0.50 par value) 5
Additional paid-in capital 93
Retained earnings 31
Service revenue
Depreciation expense
Supplies expense
Wages expense
Interest expense
Income tax expense
Miscellaneous expenses (not detailed to simplify)
Totals 139 139

Transactions during 2023 follow. All dollars are in millions, except per share amounts:

a. Borrowed $15 cash on a 5-year, 8 percent note payable, dated March 1, 2023.
b. Sold 6 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, $16.
d. Earned $285 in revenues for 2023, including $62 on credit and the rest in cash.
e. Incurred $102 in wages expense and $38 in miscellaneous expenses for 2023, with $33 on credit and the rest paid in cash.
f. Collected accounts receivable, $37.
g. Purchased other noncurrent assets, $24 cash.
h. Purchased supplies on account for future use, $36.
i. Paid accounts payable, $35.
j. Declared cash dividends on December 1, $34.
k. Signed a three-year $42 service contract to start February 1, 2024.
l. Paid the dividends in (j) on December 31.

Data for adjusting entries (amounts in millions):

m. Supplies counted on December 31, 2023, $27.
n. Depreciation for the year on the equipment, $12.
o. Interest accrued on notes payable (to be computed).
p. Wages earned by employees since the December 24 payroll but not yet paid, $14.
q. Income tax expense, $11, payable in 2024.

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 10
Accounts receivable 9
Supplies 24
Land
Equipment 91
Accumulated depreciation (on equipment) 10
Other assets (not detailed to simplify) 5
Accounts payable
Wages payable
Interest payable
Dividends payable
Income taxes payable
Long-term notes payable
Common stock (10 million shares, 0.50 par value) 5
Additional paid-in capital 93
Retained earnings 31
Service revenue
Depreciation expense
Supplies expense
Wages expense
Interest expense
Income tax expense
Miscellaneous expenses (not detailed to simplify)
Totals 139 139

Transactions during 2023 follow. All dollars are in millions, except per share amounts:

a. Borrowed15 cash on a 5-year, 8 percent note payable, dated March 1, 2023.
b. Sold 6 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,16.
d. Earned 285 in revenues for 2023, including62 on credit and the rest in cash.
e. Incurred 102 in wages expense and38 in miscellaneous expenses for 2023, with 33 on credit and the rest paid in cash.
f. Collected accounts receivable,37.
g. Purchased other noncurrent assets, 24 cash.
h. Purchased supplies on account for future use,36.
i. Paid accounts payable, 35.
j. Declared cash dividends on December 1,34.
k. Signed a three-year 42 service contract to start February 1, 2024.
l. Paid the dividends in (j) on December 31.

Data for adjusting entries (amounts in millions):

m. Supplies counted on December 31, 2023,27.
n. Depreciation for the year on the equipment, 12.
o. Interest accrued on notes payable (to be computed).
p. Wages earned by employees since the December 24 payroll but not yet paid,14.
q. Income tax expense, 11, payable in 2024.

Added by Alfonso A.

Question

Please give Ace some feedback