Brothers Mike and Tim Hargenrater began operations of their tool and die shop (H & H...

 
 
  

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Brothers Mike and Tim Hargenrater began operations of their tool and die shop (H & H Tool, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, follows: H & H Tool, Inc. Trial Balance on January 1, 2020 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 Income taxes payable Long-term notes payable Common stock (8,000 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 6,000 5,000 13,000 78,000 7,000 Credit 8,000 4,000 80,000 17,000 109,000 109,000 Transactions during 2020 follow: a. Borrowed $15,000 cash on a five-year, 8 percent note payable, dated March 1, 2020. >. Purchased land for a future building site; paid cash, $13,000. c. Earned $215,000 in revenues for 2020, including $52,000 on credit and the rest in cash. d. Sold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2020. e. Incurred $89,000 in wages expense and $25,000 in miscellaneous expenses for 2020, with $20,000 on credit and the rest paid in cash. f. Collected accounts receivable, $34,000. 3. Purchased other assets, $15,000 cash. 1. Purchased supplies on account for future use, $27,000. i. Paid accounts payable, $26,000. j. Signed a three-year $33,000 service contract to start February 1, 2021. <. Declared cash dividends on December 1, $25,000, which were paid by December 31. [Hint: Prepare two entries.] Data for adjusting entries: 1. Supplies counted on December 31, 2020, $18,000. 1. Depreciation for the year on the equipment, $10,000. 1. Interest accrued on notes payable (to be computed). >. Wages earned by employees since the December 24 payroll but not yet paid, $16,000. >. Income tax expense, $11,000, payable in 2021. (Include all balance sheet accounts, even those with zero balances.) Unadjusted Current assets: Assets Total current assets Property, plant and equipment: Net property, plant, and equipment Total assets H & H TOOL, INC. Balance Sheet At December 31, 2020 $ 0 0 Current liabilities: Liabilities Total current liabilities Total liabilities Stockholders' equity Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 0 your answer for c. as a whole percentage rounded to one decim a. Compute the current ratio for 2020. Current ratio b. Compute the total asset turnover ratio for 2020. Total asset turnover c. Compute the net profit margin ratio for 2020. Net profit margin % Brothers Mike and Tim Hargenrater began operations of their tool and die shop (H & H Tool, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, follows: H & H Tool, Inc. Trial Balance on January 1, 2020 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 Income taxes payable Long-term notes payable Common stock (8,000 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 6,000 5,000 13,000 78,000 7,000 Credit 8,000 4,000 80,000 17,000 109,000 109,000 Transactions during 2020 follow: a. Borrowed $15,000 cash on a five-year, 8 percent note payable, dated March 1, 2020. >. Purchased land for a future building site; paid cash, $13,000. c. Earned $215,000 in revenues for 2020, including $52,000 on credit and the rest in cash. d. Sold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2020. e. Incurred $89,000 in wages expense and $25,000 in miscellaneous expenses for 2020, with $20,000 on credit and the rest paid in cash. f. Collected accounts receivable, $34,000. 3. Purchased other assets, $15,000 cash. 1. Purchased supplies on account for future use, $27,000. i. Paid accounts payable, $26,000. j. Signed a three-year $33,000 service contract to start February 1, 2021. <. Declared cash dividends on December 1, $25,000, which were paid by December 31. [Hint: Prepare two entries.] Data for adjusting entries: 1. Supplies counted on December 31, 2020, $18,000. 1. Depreciation for the year on the equipment, $10,000. 1. Interest accrued on notes payable (to be computed). >. Wages earned by employees since the December 24 payroll but not yet paid, $16,000. >. Income tax expense, $11,000, payable in 2021. (Include all balance sheet accounts, even those with zero balances.) Unadjusted Current assets: Assets Total current assets Property, plant and equipment: Net property, plant, and equipment Total assets H & H TOOL, INC. Balance Sheet At December 31, 2020 $ 0 0 Current liabilities: Liabilities Total current liabilities Total liabilities Stockholders' equity Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 0 your answer for c. as a whole percentage rounded to one decim a. Compute the current ratio for 2020. Current ratio b. Compute the total asset turnover ratio for 2020. Total asset turnover c. Compute the net profit margin ratio for 2020. Net profit margin %

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Answer Sno General Journal Cash Long term notes payable bland i Cash Cash Accounts Receivable Servic... View the full answer