Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

  1. Borrowed $11 cash on March 1 using a short-term note.
  2. Purchased land on March 2 for future building site; paid cash, $8.
  3. Issued additional shares of common stock on April 3 for $33.
  4. Purchased software on July 4, $11 cash.
  5. Purchased supplies on account on October 5 for future use, $19.
  6. Paid accounts payable on November 6, $12.
  7. Signed a $20 service contract on November 7 to start February 1, 2022.
  8. Recorded revenues of $142 on December 8, including $31 on credit and $111 collected in cash.
  9. Recognized salaries and wages expense on December 9, $76 paid in cash.
  10. Collected accounts receivable on December 10, $15.

Data for adjusting journal entries as of December 31:

  1. Unrecorded amortization for the year on software, $4.
  2. Supplies counted on December 31, 2021, $12.
  3. Depreciation for the year on the equipment, $5.
  4. Interest of $1 to accrue on notes payable.
  5. Salaries and wages earned but not yet paid or recorded, $11.
  6. Income tax for the year was $7. It will be paid in 2022.

Required:

  1. Prepare a post-closing trial balance. (Enter your answers in thousands of dollars.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Non-Specialists

Authors: Eddie McLaney, Peter Atrill

11th Edition

1292244011, 9781292244013

More Books

Students also viewed these Accounting questions