Hardform Mold Shop Inc. is a company specialized in designing and building molds for the automotive...

 

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Hardform Mold Shop Inc. is a company specialized in designing and building molds for the automotive and aircraft industries. The account balances in the company's general ledger on January 1, 2020 (first day of the annual fiscal year) were as follows (all account balances are in their normal position): $ 3,700 5,900 29,300 168,500 116,500 37,500 58,500 18,000 25,200 16,600 4,200 15,700 61,500 151,500 52,200 Cash Accounts receivable Supplies inventory Land Buildings Accumulated depreciation, buildings Equipment Accumulated depreciation, equipment Accounts payable Income tax payable Interest payable Wages payable (due in 2020) Notes payable ($10,000 due June 30, 2021, balance due June 30, 2022) Common shares Retained earnings, Dec. 31, 2019 Transactions during 2020: a. The company provided mold design services, all on credit, for $210,300. In addition, the company manufactured molds for customers for $62,300 cash. b. Accounts receivable of $15,600 remain to be collected at December 31, 2020. c. Inventory of $62,900 was purchased on credit and debited to the supplies inventory account. d. Minor parts were purchased for $7,400 cash and debited to the supplies inventory account. e. Wages payable at the beginning of 2020 were paid early in 2020. Wages were earned by employees and paid during 2020 in the amount of $112,000. f. Income tax payable at the beginning of 2020 were paid early in 2020. g. Payments of $73,000 were made to creditors for supplies previously purchased on credit. h. One year's interest at 9% was paid on the notes payable at July 1, 2020. i. During 2020, James Wilkinson, the principal shareholder, purchased a new care for his wife Sylvia. The new car cost $45,000 and was paid for with personal funds in cash. j. Property taxes were paid on the land and buildings in the amount of $17,000 cash. k. Dividends were declared and paid in the amount of $7,200. Information available for year and adjusting entries: • Supplies inventory was counted and it was determined the supplies inventory was still on hand at yearend of $31,900. • Annual depreciation on the buildings is $6,000. Annual depreciation on the equipment is $5,500. • Wages of $4,000 had been earned but were unpaid and unrecorded at yearend. Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at yearend. • Income taxes of $16,500 were unpaid and unrecorded at year end. 1. Post 2020 beginning balances to T-accounts. Prepare journal entries for transactions 1 to 11 above as required and post the journal entries to T-accounts adding any new accounts that you need. Hardform Mold Shop Inc. is a company specialized in designing and building molds for the automotive and aircraft industries. The account balances in the company's general ledger on January 1, 2020 (first day of the annual fiscal year) were as follows (all account balances are in their normal position): $ 3,700 5,900 29,300 168,500 116,500 37,500 58,500 18,000 25,200 16,600 4,200 15,700 61,500 151,500 52,200 Cash Accounts receivable Supplies inventory Land Buildings Accumulated depreciation, buildings Equipment Accumulated depreciation, equipment Accounts payable Income tax payable Interest payable Wages payable (due in 2020) Notes payable ($10,000 due June 30, 2021, balance due June 30, 2022) Common shares Retained earnings, Dec. 31, 2019 Transactions during 2020: a. The company provided mold design services, all on credit, for $210,300. In addition, the company manufactured molds for customers for $62,300 cash. b. Accounts receivable of $15,600 remain to be collected at December 31, 2020. c. Inventory of $62,900 was purchased on credit and debited to the supplies inventory account. d. Minor parts were purchased for $7,400 cash and debited to the supplies inventory account. e. Wages payable at the beginning of 2020 were paid early in 2020. Wages were earned by employees and paid during 2020 in the amount of $112,000. f. Income tax payable at the beginning of 2020 were paid early in 2020. g. Payments of $73,000 were made to creditors for supplies previously purchased on credit. h. One year's interest at 9% was paid on the notes payable at July 1, 2020. i. During 2020, James Wilkinson, the principal shareholder, purchased a new care for his wife Sylvia. The new car cost $45,000 and was paid for with personal funds in cash. j. Property taxes were paid on the land and buildings in the amount of $17,000 cash. k. Dividends were declared and paid in the amount of $7,200. Information available for year and adjusting entries: • Supplies inventory was counted and it was determined the supplies inventory was still on hand at yearend of $31,900. • Annual depreciation on the buildings is $6,000. Annual depreciation on the equipment is $5,500. • Wages of $4,000 had been earned but were unpaid and unrecorded at yearend. Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at yearend. • Income taxes of $16,500 were unpaid and unrecorded at year end. 1. Post 2020 beginning balances to T-accounts. Prepare journal entries for transactions 1 to 11 above as required and post the journal entries to T-accounts adding any new accounts that you need.