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 $ 3 5 12 Now $6 8 5 3 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 Connon Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals 3 67 8 0 $94 $94 Transactions and events during 2018 (summarized in thousands of dollars) follow. a. Borrowed $12 cash on March 1 using a short-term note. 6. Purchased land on March 2 for future building site: pald cash, $9. c. Issued additional shares of common stock on April 3 for $32 d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use. $18. Pald accounts payable on November 6. $13. g. Signed a $25 service contract on November 7 to start February 1, 2019 h. Recorded revenues of $144 on December 8. Including S32 on credit and $112 collected in cash. 1. Recognized salaries and wages expense on December 9, $77 paid in cash J. Collected accounts receivable on December 10, $16. Data for adjusting Journal entries as of December 31: k. Unrecorded amortization for the year on software. $8. 1. Supplies counted on December 31, 2018. $10. m. Depreciation for the year on the equipment. $6. 17. Interest of $1 to accrue on notes payable, o. Salarles and wages earned but not yet pald or recorded, $12. 2. Income tax for the year was $8. It will be paid in 2019. No General Journal Debit Credit Date Mar 01, 2018 1 Cash 12 Notes Payable (short-term) 12 2 Mar 02, 2018 9 Land Cash Ols 9 3 Apr 03. 2018 Cash 32 Ols Common Stock 32 4 Jul 04, 2018 10 Software Accounts Payable 10 5 Oct 05, 2018 18 Supplies Accounts Payable Ols 18 6 Nov 08, 2018 13 Accounts Payable Cash 13 7 Nov 07, 2018 > No Journal Entry Required 8 Dec 08, 2018 Accounts Receivable Cash Service Revenue 32 112 144 9 Dec 09, 2018 Salaries and Wages Expense Cash ol 77 77 10 Dec 10.2018 Cash Accounts Receivable ol 18 18 11 Dec 31, 2018 8 Amortization Expense Acoumulated Amortization O 8 12 Dec 31, 2018 10% Supplies Expense Supplies 10 13 Dec 31, 2018 Depreciation Expense Accumulated Depreciation ---Equipment ISS 8 14 Dec 31, 2018 10 Interest Expense Interest Payable o 15 Dec 31, 2018 12 Salaries and Wages Expense Salaries and Wages Payable 12 16 Dec 31, 2018 8 Income Tax Expense Income Tax Payable Qlo 8 17 Dec 31, 2018 144 Service Revenue Amortization Expense Income Tax Expense Interest Expense Supplies Expense Depreciation Expense Salaries and Wages Expense Retained Earnings Solsosolo 8 8 1 10 % 6 12 99 %
