Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reportIng perlod ends December 31. The trlal balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to slmplify) Account Titles Debit Credit 2 Cash Accounts Recelvable Supplies 13 Land Equipment 70 Accumulated Depreclatlon Software 15 Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock 83 Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense $106 $106 Totals Transactions during 2015 (summarized in thousands of dollars) follow 1. Borrowed $11 cash on a six-month note payable dated March 1, 2015. 2. Purchased land for future bullding slte: pald cash, $8 3. Earned revenues for 2015, $180, Including $50 on credlt and $130 collected In 4. Issued additlonal shares of stock for $4. 5. Recognized salarles and wages expense for 2015, $95 pald In cash 6. Collected accounts recelvable, $34. 7 Purchased software, $11 cash. 8. Pald accounts payable, $12. 9. Purchased supplles on account for future use, $19 10. Signed a $20 service contract to start February 1, 2016. Data for adjusting journal entrles 11. Unrecorded amortizatlon for the year on software, $5 12. Supplies counted on December 31, 2015, $12. 13. Depreclation for the year on the equipment, $5 14. Accrued Interest of $1 on notes payable. 15. Salarles and wages earned but not yet pald or recorded, $13 16. Income tax for the year was $7 lt will be pald In 2016. Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reportIng perlod ends December 31. The trlal balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to slmplify) Account Titles Debit Credit 2 Cash Accounts Recelvable Supplies 13 Land Equipment 70 Accumulated Depreclatlon Software 15 Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock 83 Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense $106 $106 Totals Transactions during 2015 (summarized in thousands of dollars) follow 1. Borrowed $11 cash on a six-month note payable dated March 1, 2015. 2. Purchased land for future bullding slte: pald cash, $8 3. Earned revenues for 2015, $180, Including $50 on credlt and $130 collected In 4. Issued additlonal shares of stock for $4. 5. Recognized salarles and wages expense for 2015, $95 pald In cash 6. Collected accounts recelvable, $34. 7 Purchased software, $11 cash. 8. Pald accounts payable, $12. 9. Purchased supplles on account for future use, $19 10. Signed a $20 service contract to start February 1, 2016. Data for adjusting journal entrles 11. Unrecorded amortizatlon for the year on software, $5 12. Supplies counted on December 31, 2015, $12. 13. Depreclation for the year on the equipment, $5 14. Accrued Interest of $1 on notes payable. 15. Salarles and wages earned but not yet pald or recorded, $13 16. Income tax for the year was $7 lt will be pald In 2016
