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) Account Titles Debit Credit Cash Accounts Receivable $4 11 Supplies Land 0 Equipment Accumulated Depreciation Software 56 7 17 Accumulated Amortization 4 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 6 68 C 0 C vepLeciaLIU DAyenae Amortization Expense C Income Tax Expense C Interest Expense Supplies Expense $92 $92 Totals 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 $28. 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 $152 on December 8, including $36 on credit and $116 collected in cash Recognized salaries and wages expense on December 9, $81 paid in cash. J Collected accounts receivable on December 10, $20. Data for adjusting journal entries as of December 31 k. Unrecorded amortization for the year on software, $4 L 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. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $4 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. 1, 3, 5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the trar adjusting entries (k)-(p), and closing entry. (Enter your answers in thousands of dollars.) Cash Accounts Receivable Beg. Bal. Beg. Bal. End. Bal, End. Bal. End. Bal. End, Bal. Land Supplies Beg. Bal. Beg. Bal. End. Bal. End. Bal. Equipment Accumulated Depreciation Beg. Bal. Beg. Bal. End. Bal. End. Bal. Software Accumulated Amortization Software Accumulated Amortization Beg. Bal. Beg. Bal. End. Bal, End. Bal. Accounts Payable Notes Payable (short-term) Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries and Wages Payable Interest Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Income Tax Pavable Common Stock Income Tax Payable Common Stock Beg. Ba. Beg Bal End. Bal. End. Bal. Retained Earnings Service Revenue Beg. Bal. Beg. Bal. End. Bal, End. Bal. Salaries and Wages Expense Depreciation Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Amortization Expense Income Tax Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Supplies Expense Interest Expense Beg. Bal. Beg. Bal, End. Bal. End. Bal
