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, follovw the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit $ 3 Cash Accounts Receivable Supplies 12 Equipment Accumulated Depreclation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense $ 6 21 82 0 Supplies Expense $107 $107 Transactions during 2015 (summarized in thousands of dollars) follow 1. Borrowed $12 cash on a six-month note payable dated March 1, 2015 2. Purchased land for future building site; pald cash, $9 3. Earned revenues for 2015, $172, including $46 on credit and $126 collected in cash. 4. Issued additional shares of stock for $3. Transactions during 2015 (summarized in thousands of dollars) follow: 1. Borrowed $12 cash on a six-month note payable dated March 1, 2015. 2. Purchased land for future building site; paid cash, $9. 3. Earned revenues for 2015, $172. including $46 on credit and $126 collected in cash 4. Issued additional shares of stock for $3 5. Recognized salaries and wages expense for 2015, $91 paid in cash. 6. Collected accounts receivable, $30. 7. Purchased software, $10 cash. 8. Paid accounts payable, $13 9. Purchased supplies on account for future use, $18. 10. Signed a $25 service contract to start February 1, 2016. Data for adjusting journal entries: 11. Unrecorded amortization for the year on software, $6 12. Supplies counted on December 31, 2015, $10. 13. Depreciation for the year on the equipment, $6 14. Accrued interest of $1 on notes payable 15. Salaries and wages earned but not yet paid or recorded, $12. 16. Income tax for the year was $8. It will be paid in 2016. References C4-2 From Recording Transaction (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3 and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2 LO 4-3, L0 4-4, LO 4-5, LO 4-6 Section Break 2. Record journal entries for transactions (1) through (10). (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) View transaction list X: 1 Record the borrowing of $12 cash on a six-month note 9 10 payable dated March 1, 2015 and Record the purchase of land for future building site; paid cash, $9. Record the entry for revenues for 2015, $172, including $46 on credit and $126 collected in cash Credit 4 Record the issuance of additional shares of stock for $3. 5 Record the salaries and wages expense for 2015, $91 paid in cash. 6 Record the collection of accounts receivable, $30. Note:- journal entry has been entered 172 Record entry Clear entry View general journal 2. Record journal entries for transactions (1) through (10). (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.) View transaction list 9 10 5 Record the salaries and wages expense for 2015, $91 paid in cash. and 6 Record the collection of accounts receivable, $3 Record the purchase of software, $10 cash. 8 Record the payment of accounts payable, $13. 9 Record the purchase of supplies on account for future Credit use, $18. 172 10 Record the entry for $25 service contract signed to start February 1, 2016. Note : -journal entry has been entered Record entry Clear entry View general journal 3, 5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry. (Enter your answers in thousands of dollars.) Cash Accounts Receivable Beg. Bal. Beg. Ball End. Bal End. Bal Supplies Land Beg. Ba Beg. Ball End. Ba End. Bal Equipment Accumulated Depreciation-Equipment Beg. Bal Beg. Bal End. Bal End. Bal Software Accumulated Amortization Beg. Bal Beg. Ba End. Bal End. Bal Accounts Payable Notes Payable Beg. Bal Beg. Bal End. Bal End. Bal Salaries and Wages Payable Interest Payable Beg. Bal Beg. Bal End. Bal End. Bal Income Tax Payable Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Retained Earnings Service Revenue Beg. Bal Beg. Bal Retained Earnings Service Revenue Beg. Bal. Beg. Bal End. Bal. End. Bal Depreciation Expense Amortization Expense Beg. Ba Beg. Bal End. Bal End. Bal. Income Tax Expense Interest Expense Beg. Ba Beg. Bal. End. Ba End. Bal. Salaries and Wages Expense Supplies Expense Beg. Bal. Beg. Bal End. Bal. End. Ba 3. Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance. Enter your answers in thousands of dollars.) H & H TOOL, INC. Unadjusted Trial Balance (in thousands) Account Titles Debit Credit Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Account Titles Debit Credit Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Interest Expense Income Tax Expense Totals 01$ Record the adjusting journal entries (11) through (16). (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.) 4. View transaction list 1 Record the unrecorded amortization for the year on software, $6. 2 Record the adjusting entry for supplies counted on at will be December 31, 2015 for $10. Record the adjusting entry for depreciation for 2015, $6. Record the adjusting entry for accrued interest for $1 on 3 4 notes payable. Credit 5 Record the adjusting entry for salaries and wages earned but not paid for $12. 6 Record the adjusting entry for income tax expense for 2015 for $8 that will be paid in 2016. Note:journal entry has been entered Record entry Clear entry View general jo 5. Post the adjusting entries from requirement 4 and prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) H & H TOOL, INC. Adjusted Trial Balance in thousands) Debit Credit Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense 6.b Prepare a statement of retained earnings. H & H TOOL, INC Statement of Retained Earnings in thousands) Balance, January 1, 2015 Balance, December 31, 2015 6.c Prepare balance sheet. (Amounts to be deducted should be indicated by a minus sign.) H & H TOOL, INC. Balance Sheet (in thousands) Equipment Software Post the closing entry from requirement 7 and prepare a post-closing trial balance. (Enter your answers in thousands of dollars.) 8. H & H TOOL, INC. Post-Closing Trial Balance (in thousands) Account Titles Credit Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense