Question

Required information C4-2 From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, LO 4-5, LO 4-6) (The following information applies to the questions displayed below.) Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows the amounts are rounded to thousands of dollars to simplify): Debit Credit 4 11 0 59 $ 7 14 Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals 6 6 0 0 0 0 66 7 ооооооо $92 $92

Answer 1

Answer:

Net income		21
Net income		21
Divided by: Service revenue		158
Net profit margin		13.3%

Accounts payable	Notes payable short term	Salaries and wages payable	Interest payable	Income tax payable	Total liabilities
9	13	12	2	9	45
Common stock	Retained earnings	Total stockholder's equity
91	28	119

Total stockholder's equity is more than total liabilities.
Company is financed primary financed by stockholder's equity.

Cash	Accounts receivable	Supplies	Current assets
67	20	11	98
Accounts payable	Notes payable short term	Salaries and wages payable	Interest payable	Income tax payable	Current liabilities
9	13	12	2	9	45

Current assets	Divided by	Current liabilities	=	Current ratio
98	/	45	=	2.18

Explanation:

XI 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in S22 : A B с D E R s T 1 2 Assets F G H K M NO P Q Balance sheet Liabilities Stockholder's equity Income statement Notes Salaries payable and Income Net Net Accounts short wages Interest tax Common Retained Net equipment software payable term payable payable payable stock earnings Revenue Expenses income 52 8 6 66 7 13 7 25 12 17 (14) Accounts 3 Cash receivable Supplies Land 4 Beg. Bal 4 4 11 5 5 a a 13 6 b (7) 7 с 25 8 d (12) 9 e 17 10 f (14) 11 g (No entry required) 12 h 119 39 13 i (84) 14 23 (23) 15 Unadj. Bal 67 20 28 16 17 Unadj. Bal 67 20 28 18 k 19 i (17) 20 m 158 158 (84) 158 (84) (84) 7 52 20 9 13 - 91 81 158 (84) 74 7 52 20 9 13 91 81 158 (6) (7) 21 n 2 (6) (17) (7) (2) (12) (9) 28 (84) 74 (6) (6) (17) (17) Supplies expense (28-11) (7) (7) (2) (2) (12) (12) (9) (9) (137)| 21 Windows Go to Settings to activate Windows 12 22 o 23 p 24 Unadj. Bal 25 9 9 67 20 11 7 45 14 9 13 12 2 91 158 Sheet118 Sheet119 Sheet120 Sheet121 Sheet122 Sheet123 Sheet124 Sheet125 1 READY CIRCULAR REFERENCES 3 + 100% i Search the web and Windows O ENG US 02:27 22-09-20