Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify):
Below are the correct journal entries that have already been submitted that correspond with the T-Accounts.
Required Information [The following information applies to the questions dlisplayed below. Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018 follows (the amounts are rounded to thousands of dollars to simplify): Debit Credit Account Titles Cash Accounts Receivable Supplies Land 4 4. 11 Equipment Accumulated Depreciation Software 68 7 24 Accumulated Amortization 8 Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue 6 e 83 7 Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals $111 $111 Transactions and events during 2018 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on March 1 using a short-term note b. Purchased land on March 2 for future building site; paid cash, $7. c. Issued additional shares of common stock on April 3 for $31. d. Purchased software on July 4,. $12 cash. e. Purchased supplies on account on October 5 for future use, $17 f Paid accounts payable on November 6, $14 g. Signed a $30 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $176 on December 8, including $48 on credit and $128 collected in cash. i. Recognized salaries and wages expense on December 9, $93 paid in cash. j.Collected accounts receivable on December 10, $32 Data for adjusting journal entries as of December 31: k.Unrecorded amortization for the year on software, $8 Supplies counted on December 31, 2018, $11. m. Depreciation for the year on the equipment, $7. n. Interest of $2 to accrue on notes payable o. Salaries and wages earned but not yet paid or recordeed, $11. p. Income tax for the year was $9. It will be paid in 2019. 1,3, 5 and 8. Set up Teccounts for the accounts on the trial belence. Enter beginning balances and post the transsctions (e- usting entries kp and closing entry. (Enter your answers in thousands of dollars.) Agpounts Reoeivabie Cach Bog Bal Beg Bal End. Bal (a) (b) (c) (d) 8upplles Land Bog Bal Bog Bal End. Bal End. Bal Equipment Apoumulated Depreolation Bog Bal Bag Bal End, Bal End, Bal Boftware Aooumulated Amortization Beg Bal Bog Bal End, Bal End, Bal Acoounte Payable Notes Payable (chort-term) Bog Bal Bog Bal End. Bal End. Bal 8alaries and Wages Payable Interect Payable Bog Bal Beg Bal End. Bal End Bal Common atopk Inoome Tax Paablie Beg Bal Bog Bal End. Bal End Bal 8ervioe Revenue Retained Earminge Beg Bal Bog Bal End. Bal End. Bal Depreolation Expence 8alaries and Wages Expense Bog Ba Bog Bal End, Bal. End Bal Amortization Expence Inoome Tax Ex Beg Bal Bag Bal End Bal End, Bal Interect Expense upplies Expense Bog Bal Beg Bal Answer is complete and correct. Debit No Transaction General Journal Credit 1 Cash 13 . Notes Payable (short-term) 13 b. 2 Land 7 Cash 7 Cash 31 C. Common Stock 31 Software 4 d. 12 Cash 12 5 Supplies 17 Accounts Payable 17 Accounts Payable f. 14 Cash 14 No Journal Entry Required 7 9. 8 h. Cash 128 Accounts Receivable 48 Service Revenue 176 Salaries and Wages Expense i. 93 Cash 93 10 Cash 32 Accounts Receivable 32
