Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 4 Accounts Receivable 4 Supplies 11 Land 0 Equipment 50 Accumulated Depreciation $ 7 Software 23 Accumulated Amortization 5 Accounts Payable 6 Notes Payable (short-term) 0 Salaries and Wages Payable 0 Interest Payable 0 Income Tax Payable 0 Common Stock 67 Retained Earnings 7 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 $ 92 $ 92 Transactions during 2015 (summarized in thousands of dollars) follow: 1. Borrowed $13 cash on a six-month note payable dated March 1, 2015. 2. Purchased land for future building site; paid cash, $7. 3. Earned revenues for 2015, $140, including $30 on credit and $110 collected in cash. 4. Issued additional shares of stock for $2. 5. Recognized salaries and wages expense for 2015, $75 paid in cash. 6. Collected accounts receivable, $14. 7. Purchased software, $12 cash. 8. Paid accounts payable, $14. 9. Purchased supplies on account for future use, $17. 10. Signed a $30 service contract to start February 1, 2016. Data for adjusting journal entries: 11. Unrecorded amortization for the year on software, $5. 12. Supplies counted on December 31, 2015, $11. 13. Depreciation for the year on the equipment, $7. 14. Accrued interest of $2 on notes payable. 15. Salaries and wages earned but not yet paid or recorded, $13. 16. Income tax for the year was $9. It will be paid in 2016.

KQu CA-2 From Recording Transactions (Including Adjusting Jour LO 4-3, LO 4A, LO 4-5, LO 4-61 (The following information applies to the questions displayed below] Brothers Harry and Herman Housyerday began operations of thelr machine shop (H January 1/2013. The annual reporting penod ends December 31. The trial balance or the amounts are rounded to thousands of dollars to simplify $ 4 Cash Accounts Receivable Suppites 4 0 50 Equipment Accumulated Depreciation Software Accumulated Amortizanorn 28 Accounts Payable Notes Payable (short-term) 0 0 Salaries and Wages Payable interest Payable Income Tax Payable Common Stock 67 Retained Earnings Serice Revenue Saleries and Wages Expense Depreciation Expense Amorization Expense income Tex Expense Interest Expense 0 0 0 Supplies Expense Totai $92 $92 Transacs