Question
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2010. The annual reporting period ends
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2010. The annual reporting period ends December 31. The trial balance on January 1, 2012, follows (the amounts are rounded to thousands of dollars to simplify): |
Account Titles | Debit | Credit | ||||
Cash | $ | 3 | ||||
Accounts Receivable | 5 | |||||
Supplies | 12 | |||||
Land | 0 | |||||
Equipment | 60 | |||||
Accumulated Depreciation | $ | 6 | ||||
Other Noncurrent Assets | 4 | |||||
Accounts Payable | 5 | |||||
Notes Payable (short-term) | 0 | |||||
Wages Payable | 0 | |||||
Interest Payable | 0 | |||||
Income Tax Payable | 0 | |||||
Contributed Capital | 65 | |||||
Retained Earnings | 8 | |||||
Dividends Declared | 0 | |||||
Service Revenue | 0 | |||||
Wages Expense | 0 | |||||
Depreciation Expense | 0 | |||||
Income Tax Expense | 0 | |||||
Interest Expense | 0 | |||||
Supplies Expense | 0 | |||||
Totals | $ | 84 | $ | 84 | ||
Transactions during 2012 (summarized in thousands of dollars) follow: | |
a. | Borrowed $12 cash on a six-month note payable dated March 1, 2012. |
b. | Purchased land for future building site, paid cash, $9. |
c. | Earned revenues for 2012, $160, including $40 on credit and $120 collected in cash. |
d. | Issued additional shares of stock for $3. |
e. | Recognized wages expense for 2012, $85 paid in cash. |
f. | Collected accounts receivable, $24. |
g. | Purchased other noncurrent assets, $10 cash. |
h. | Paid accounts payable, $13. |
i. | Purchased supplies on account for future use, $18. |
j. | Signed a $25 service contract to start February 1, 2013. |
k. | Declared and paid a cash dividend, $17. |
Data for adjusting journal entries: | |
l. | Supplies counted on December 31, 2012, $10. |
m. | Depreciation for the year on the equipment, $6. |
n. | Accrued interest of $1 on notes payable. |
o. | Wages earned not yet paid or recorded, $12. |
p. | Income tax for the year was $8. It will be paid in 2013. |
Required: | |
1. | Set up T-accounts for the accounts on the trial balance and enter beginning balances. (Enter your answers in thousands of dollars.) |
for
Cash
Accounts Receivable
Supplies
Land
Equipment
Accumulated Depreciation
Other Noncurrent Assets
Accounts payable
Notes Payable
Wages Payable
Interest Payable
Income Tax Payable
Contributed Capital
Retained Earnings
Dividends Declared
Service Revenue
Depreciation Expense
Income Tax Expense
Interest Expense
Wages Expense
Supplies Expense
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