Fill in the the empty areas in the balance sheet, income statement and statement

Question

Fill in the the empty areas in the balance sheet, income statement and statement of retained earnings

Brothers Mike and Tim Hargen began operations of their tool and die shop (H&H; Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2017, follows: Account Titles Credit Accounts recelvable Supplies Land 11,000 26,000 93,000 7,000 Accumulated depreciation (on equipment) Other assets (not detailed to simplify) Accounts payable Wages payable Interest payable Income taxes payable Long-term notes payable Common stock (6,000 shares, $.50 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Remaining expenses (not detailed to simplify) 12,000 3,000 95,000 39,000 Totals 149,000 149,000 Transactions during 2017 follow a. Borrowed $20,000 cash on a 5-year, 6 percent note payable, dated March 1, 2017 b. Purchased land for a future building site on March 15, 2017; paid cash, $18,000 c. Earned $301,000 in revenue. Transactions dated August 30, 2017, including $64,000 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, 2017 e. Incurred $143,000 in remaining expenses for 2017, invoices dated October 15, 2017, including $35,000 on credit and the rest paid in cash. f. Collected accounts receivables on November 10, 2017, $39,000. g. Purchased other assets on November 15, 2017, $13,000 cash. h. Purchased supplies on account for future use on December 1, 2017, $38,000. i. Paid accounts payable on December 15, 2017, $36,000. j. Signed a three-year $44,000 service contract on December 17, 2017 to start February 1, 2018 k. Declared and paid cash dividends on December 20, 2017, $36,000.

Explanation / Answer

H & H Tool Inc. Income Statement for the year ended December 31, 2017 Service Revenue 301000 Operating Expenses: Depreciation Expense 14000 Supplies Expense 35000 Wages Expense 16000 Remaining Expenses 143000 Total Operating Expenses 208000 Operating Income 93000 Other Items: Interest Expense 1000 Prtax Income 92000 Income Tax Expense 13000 Net Income 79000 Earnings Per Share $7.90 H & H Tool Inc. Statement Stockholders' Equity for the year ended December 31, 2017 Common Stock Additional paid-in capital Retained earnings Total Stockholders' Equity Balance , January 1, 2017 3000 95000 39000 137000 Additional stock issue 2000 2000 4000    Add: Net income 79000 79000    Less: Dividend Paid -36000 -36000 Balance, December 31, 2017 5000 97000 82000 184000 H & H Tool Inc. Balance Sheet as at December 31, 2017 Assets Liabilities Current Assets Current Liabilities Cash 114000 Accounts Payable 37000 Accounts Receivable 36000 Wages Payable 16000 Supplies 29000 Interest Payable 1000 Income Taxes Payable 13000 Total Current Assets 179000 Total Current Liabilities 67000 Other Assets 7000 Notes Payable 20000 Total Liabilities 87000 Property, plant and equipment Land 18000 Stockholders' Equity Equipment 93000 Common Stock 5000 Less: Accumulated depreciation -26000 Additional paid-in-stock 97000 Retained Earnings 82000 Net Property,plant and equipment 85000 Total Stockholders' Equity 184000 Total Assets 271000 Total liabilities and stockholders' equity 271000

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