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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 81
From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2,3, and 4)
Brothers Harry and Herman Hausyerday began operations of their machine shop (H H Tool, Inc.) on January 1, 2010. The annual reporting period ends December 31. The trial balance on January 1, 2012, follows (the amounts are rounded to thousands of dollars to simplify):
Transactions during 2012 (summarized in thousands of dollars) follow:
a. Borrowed $12 cash on a six-month note payable dated March 1, 2012.
b. Purchased land for future building site, paid cash, $9.
c. Earned revenues for 2012, $160, including $40 on credit and $120 collected in cash.
d. Issued additional shares of stock for $3.
e. Recognized wages expense for 2012, $85 paid in cash.
f. Collected accounts receivable, $24.
g. Purchased other noncurrent assets, $ 10 cash.
h. Paid accounts payable, $13.
i. Purchased supplies on account for future use, $18.
j. Signed a $25 service contract to start February 1, 2013.
k. Declared and paid a cash dividend, $17.
Data for adjusting journal entries:
l. Supplies counted on December 31, 2012, $10.
m. Depreciation for the year on the equipment, $6.
n. Accrued interest of $1 on notes payable.
o. Wages earned not yet paid or recorded, $12.
p. Income tax for the year was $8. It will be paid in 2013.
Required:
1. Set up T-accounts for the accounts on the trial balance and enter beginning balances.
2. Record journal entries for transactions ( a ) through ( k ), and post them to the T-accounts.
3. Prepare an unadjusted trial balance.
4. Record and post the adjusting journal entries ( l ) through ( p ).
5. Prepare an adjusted trial balance.
6. Prepare an income statement, statement of retained earnings, and balance sheet.
7. Prepare and post the closing journal entries.
8. Prepare a post-closing trial balance.
9. How much net income did H H Toot, Inc., generate during 2012 What was its net profit margin Is the company financed primarily by liabilities or stockholders' equity What is its current ratio
Brothers Harry and Herman Hausyerday began operations of their machine shop (H H Tool, Inc.) on January 1, 2010. The annual reporting period ends December 31. The trial balance on January 1, 2012, follows (the amounts are rounded to thousands of dollars to simplify):
Transactions during 2012 (summarized in thousands of dollars) follow:
a. Borrowed $12 cash on a six-month note payable dated March 1, 2012.
b. Purchased land for future building site, paid cash, $9.
c. Earned revenues for 2012, $160, including $40 on credit and $120 collected in cash.
d. Issued additional shares of stock for $3.
e. Recognized wages expense for 2012, $85 paid in cash.
f. Collected accounts receivable, $24.
g. Purchased other noncurrent assets, $ 10 cash.
h. Paid accounts payable, $13.
i. Purchased supplies on account for future use, $18.
j. Signed a $25 service contract to start February 1, 2013.
k. Declared and paid a cash dividend, $17.
Data for adjusting journal entries:
l. Supplies counted on December 31, 2012, $10.
m. Depreciation for the year on the equipment, $6.
n. Accrued interest of $1 on notes payable.
o. Wages earned not yet paid or recorded, $12.
p. Income tax for the year was $8. It will be paid in 2013.
Required:
1. Set up T-accounts for the accounts on the trial balance and enter beginning balances.
2. Record journal entries for transactions ( a ) through ( k ), and post them to the T-accounts.
3. Prepare an unadjusted trial balance.
4. Record and post the adjusting journal entries ( l ) through ( p ).
5. Prepare an adjusted trial balance.
6. Prepare an income statement, statement of retained earnings, and balance sheet.
7. Prepare and post the closing journal entries.
8. Prepare a post-closing trial balance.
9. How much net income did H H Toot, Inc., generate during 2012 What was its net profit margin Is the company financed primarily by liabilities or stockholders' equity What is its current ratio
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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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