Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to simplify):

Account Titles

Debit

Credit

Cash

$

2

Accounts Receivable

6

Supplies

13

Land

0

Equipment

61

Accumulated Depreciation

$

5

Software

15

Accumulated Amortization

6

Accounts Payable

4

Notes Payable (short-term)

0

Salaries and Wages Payable

0

Interest Payable

0

Income Tax Payable

0

Common Stock

73

Retained Earnings

9

Service Revenue

0

Salaries and Wages Expense

0

Depreciation Expense

0

Amortization Expense

0

Income Tax Expense

0

Interest Expense

0

Supplies Expense

0

Totals

$

97

$

97

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 building site; paid cash, $8.
3.	Earned revenues for 2015, $162, including $41 on credit and $121 collected in cash.
4.	Issued additional shares of stock for $4.
5.	Recognized salaries and wages expense for 2015, $86 paid in cash.
6.	Collected accounts receivable, $25.
7.	Purchased software, $11 cash.
8.	Paid accounts payable, $12.
9.	Purchased supplies on account for future use, $19.
10.	Signed a $20 service contract to start February 1, 2016.
Data for adjusting journal entries:
11.	Unrecorded amortization for the year on software, $6.
12.	Supplies counted on December 31, 2015, $12.
13.	Depreciation for the year on the equipment, $5.
14.	Accrued interest of $1 on notes payable.
15.	Salaries and wages earned but not yet paid or recorded, $13.
16.	Income tax for the year was $7. It will be paid in 2016.

2.

Record journal entries for transactions (1) through (10). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.)

3, 5 and 8.

Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry. (Enter your answers in thousands of dollars.)

3.	Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.)

H & H TOOL, INC.
Unadjusted Trial Balance
(in thousands)
Account Titles	Debit	Credit
Cash
Accounts Receivable
Supplies
Land
Equipment
Accumulated Depreciation
Software
Accumulated Amortization
Accounts Payable
Notes Payable (shortterm)
Salaries and Wages Payable
Interest Payable
Income Taxes Payable
Common Stock
Retained Earnings
Service Revenue
Salaries and Wages Expense
Supplies Expense
Depreciation Expense
Interest Expense
Income Tax Expense
Totals

4.

Record the adjusting journal entries (11) through (16)

5.

Post the adjusting entries from requirement 4 and prepare an adjusted trial balance

6.a

Prepare an income statement.

6.b

Prepare a statement of retained earnings.

6.c

Prepare balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

7.

Prepare the closing journal entry

8.

Post the closing entry from requirement 7 and prepare a post-closing trial balance

H & H TOOL, INC.
Post-Closing Trial Balance
(in thousands)
Account Titles	Debit	Credit
Cash
Accounts Receivable
Supplies
Land
Equipment
Accumulated Depreciation
Software
Accumulated Amortization
Accounts Payable
Notes Payable (shortterm)
Salaries and Wages Payable
Interest Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Service Revenue
Salaries and Wages Expense
Supplies Expense
Depreciation Expense
Amortization Expense
Interest Expense
Income Tax Expense
Totals