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 $ 4 4 11 53 $ 7 20 7 6 Account Titles 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 Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense a 65 7 0 0 Totals $92 $92 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. 9. Signed a $30 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $146 on December 8, including $33 on credit and $113 collected in cash. i. Recognized salaries and wages expense on December 9, $78 paid in cash. j. Collected accounts receivable on December 10, $17. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $7. 1. 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 recorded, $13. p. Income tax for the year was $9. It will be paid in 2019. Complete this question by entering your answers in the tabs below. Reg 6A Req 6B Req 6C Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.) H&H TOOL, INC. Balance Sheet At December 31, 2018 (in thousands) Assets Liabilities Current Assets Cash $ 67 $ 9 Accounts Receivable 20 13 Current Liabilities Accounts Payable Salaries and Wages Payable Notes Payable (short-term) Interest Payable Income Tax Payable Supplies 11 13 0 2 0 9 0 $ 0 0 $ 0 Total Current Assets 98 Total Current Liabilities 46 Land 7 Stockholders' Equity $ 53 Common Stock $ 96 Equipment Accumulated Depreciation (14) 39 Retained Earnings 20 Software 32 $ 0 Accumulated Amortization (14) 18 116 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 162 $ 162 Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
