COMP4-1 (Static) Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratio Analysis LO4-1, 4-2, 4-3, 4-4 (GL) 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: Transactions during 2020 follow: a. Borrowed \$15,000 cash on a five-year, 8 percent note payable, dated March 1, 2020. b. 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. g. Purchased other assets, $15,000 cash. h. 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. k. Declared cash dividends on December 1, $25,000, which were paid by December 31. [Hint: Prepare two entries.] Data for adjusting entries: I. Supplies counted on December 31, 2020, $18,000. n. Depreciation for the year on the equipment, $10,000. n. Interest accrued on notes payable (to be computed). o. Wages earned by employees since the December 24 payroll but not yet paid, $16,000. p. Income tax expense, $11,000, payable in 2021. General Journal tab - (Step 1) Prepare the journal entries to record the first 12 transactions (transactions (a) through (k)). Review the accounts as shown in the General Ledger and Trial Balance tabs. (Step 2) Prepare the necessary adjusting entries (13) through (16) (transactions (i) through (p)) to correctly report net income for the period. (Step 3) After preparing the financial statements, record the closing entry (17). Notice the effect on the trial balance, income statement, and balance sheet tabs once the closing entry is posted. General Ledger tab - Each journal entry is posted automatically to the General Ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances in the General Ledger. Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the dropdown. Your choice will determine the reported values on the financial statement tabs. Income Statement tab - Use the drop-downs to select the accounts that should be properly included on the Income Statement. Compute earnings per share. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Statement of Stockholders' Equity tab - Use the drop-downs to select the accounts that should be properly included on the Statement of Stockholders' Equity and enter the appropriate amounts. Balance Sheet tab - Use the drop-downs to select the accounts that should be properly included on the Balance Sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Analysis tab - Calculate the current ratio, total asset turnover ratio, and net profit margin ratio for 2020. repare journal entries for transactions. (If no entry is required for a transaction/event, select "No journal entry required" in he first account field.) Journal entry worksheet Borrowed $15,000 cash on a five-year, 8 percent note payable, dated March 1, 2020. Note: Enter debits before credits. Each journal entry is posted automatically to the general ledger. Use the drop-down box below to view the unadjusted, adjusted, or post-closing balances in the General Ledger. General Ledger Account You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the drop-down bos below. Your choice will determine the reported values on the financial statement tabs. Use the drop-downs below to select the accounts that should be properly included on the income statement. Also, compute earnings per share. The unadjusted or adjusted balances will appear for each account, based on your selection in the drop-downs. (Round your Earnings per share answer to 2 decimal places.) Use the drop-downs to select the accounts that should be properly included on the statement of stockholders' equity and enter the appropriate amounts. (Amounts to be deducted should be indicated with a minus sign.) Use the drop-downs below to select the accounts that should be properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection in the drop-downs. (Include all balance sheet accounts, even those with zero balances.) Compute the applicable ratios shown below for 2020. (Round your answers for a. and b. to 2 decimal places. Enter your answer for c. as a whole percentage rounded to one decimal place (i.e. 0.288 should be entered as 28.8 ).)