T-Account Help! Brothers Mike and Tim Hargen began operations of their tool and
ID: 2574706 • Letter: T
Question
T-Account Help!
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 Debit 0,000 9,000 8,000 Cash Accounts recelvable Supplies Land Equlpment Accumulated depreclation (on equipment) Other assets (not detalled to simplify) Accounts payable Wages payable Interest payable Income taxes payable Long-term notes payable Common stock (8,000 shares, S.50 par value) Additonal paid-in capltal Retained earnings Service revenue Depreclatlion expense Supples expense Wages expense Interest expense Income tax expense Remalning expenses (not detalled to simplify) 85.000 15,000 7.000 4.000 87000 23,000 Totals 129,000 129,000 Transactions during 2017 follow a. Borrowed $15,000 cash on a 5-year, 8 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 $271,000 in revenue. Transactions dated August 30, 2017, including $56,000 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 $128,000 in remaining expenses for 2017, invoices dated October 15, 2017, including $27,000 on credit and the rest paid in cash. f. Collected accounts receivables on November 10, 2017, $41000 g. Purchased other assets on November 15, 2017, $18,000 cash. h. Purchased supplies on account for future use on December 1, 2017, $30.000. Paid accounts payable on December 15, 2017, $28,000. j Signed a three-year $36,000 service contract on December 17, 2017 to start February 1. 2018. k Declared and paid cash dividends on December 20, 2017, $28,000. Data for acjusting entries: L Supplies counted on December 31, 2017, $21.000. m Depreciation for the year on the equipment, $17,000. n Interest accrued on notes payable (to be computed). o. Wages earned by employees since the December 24 payroll but not yet paid, $20,000. p. Income tax expense, $16,000, payable in 2018.Explanation / Answer
Interest accrued on notes payable = $15000 x 8% x 10 / 12 = $1000
Cash Accounts Receivable Debit Credit Debit Credit Beg. Bal. 10000 18000 b. Beg. Bal. 9000 41000 f. a. 15000 101000 e. c. 56000 c. 215000 18000 g. End. bal. 24000 d. 4000 28000 i. f. 41000 28000 k. End. bal. 92000 Supplies Land Debit Credit Debit Credit Beg. Bal. 18000 27000 l. b. 18000 h. 30000 End. bal. 18000 End. bal. 21000 Equipment Accumulated Depreciation Debit Credit Debit Credit Beg. Bal. 85000 15000 Beg. Bal. 17000 m. End. bal. 85000 End. bal. 32000 Other Assets Accounts Payable Debit Credit Debit Credit Beg. Bal. 7000 i. 28000 27000 e. g. 18000 30000 h. End. bal. 25000 End. bal. 29000 Income Tax Payable Wages Payable Debit Credit Debit Credit 16000 p. 20000 o. End. bal. 16000 End. bal. 20000 Interest Payable LT Notes Payable Debit Credit Debit Credit 1000 n. 15000 a. End. bal. 1000 End. bal. 15000 Common Stock Additional Paid-in Capital Debit Credit Debit Credit 4000 Beg. Bal. 87000 Beg. Bal. 2000 d. 2000 d. End. bal. 6000 End. bal. 89000 Retained Earnings Service Revenue Debit Credit Debit Credit k. 28000 23000 Beg. Bal. 271000 c. End. bal. 5000 End. bal. 271000 Depreciation Expense Income Tax Expense Debit Credit Debit Credit m. 17000 p. 16000 End. bal. 17000 End. bal. 16000 Interest Expense Supplies Expense Debit Credit Debit Credit n. 1000 l. 27000 End. bal. 1000 End. bal. 27000 Wages Expense Remaining Expense Debit Credit Debit Credit o. 20000 e. 128000 End. bal. 20000 End. bal. 128000Related Questions
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