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 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 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 $24 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 $162 on December 8, including $41 on credit and $121 collected in cash Recognized salaries and wages expense on December 9, $86 paid in cash Collected accounts receivable on December 10, $25 Data for adjusting journal entries as of December 31 Unrecorded amortization for the year on software, $6 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, $13 Income tax for the year was $7 It will be paid in 2022 Required Record journal entries for transactions ( a ) through ( j ) (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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 19, 2024

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	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 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 $24.
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 $162 on December 8, including $41 on credit and $121 collected in cash.
Recognized salaries and wages expense on December 9, $86 paid in cash.
Collected accounts receivable on December 10, $25.

Data for adjusting journal entries as of December 31:

Unrecorded amortization for the year on software, $6.
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, $13.
Income tax for the year was $7. It will be paid in 2022.

Required:

Record journal entries for transactions (a) through (j). (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.)