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Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 1, 2020. The annual reporting period ends
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, 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 | 51 | |
Accumulated Depreciation | $ 5 | |
Software | 24 | |
Accumulated Amortization | 4 | |
Accounts Payable | 4 | |
Notes Payable (short-term) | 0 | |
Salaries and Wages Payable | 0 | |
Interest Payable | 0 | |
Income Tax Payable | 0 | |
Common Stock | 74 | |
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 | $ 96 | $ 96 |
Transactions and events during 2021 (summarized in thousands of dollars) follow:
- Borrowed $11 cash on March 1 using a short-term note.
- Purchased land on March 2 for future building site; paid cash, $8.
- Issued additional shares of common stock on April 3 for $33.
- Purchased software on July 4, $11 cash.
- Purchased supplies on account on October 5 for future use, $19.
- Paid accounts payable on November 6, $12.
- Signed a $20 service contract on November 7 to start February 1, 2022.
- Recorded revenues of $142 on December 8, including $31 on credit and $111 collected in cash.
- Recognized salaries and wages expense on December 9, $76 paid in cash.
- Collected accounts receivable on December 10, $15.
Data for adjusting journal entries as of December 31:
- Unrecorded amortization for the year on software, $4.
- Supplies counted on December 31, 2021, $12.
- Depreciation for the year on the equipment, $5.
- Interest of $1 to accrue on notes payable.
- Salaries and wages earned but not yet paid or recorded, $11.
- Income tax for the year was $7. It will be paid in 2022.
Required:
- Prepare a post-closing trial balance. (Enter your answers in thousands of dollars.)
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