C4-2 From Recording Transactions (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, LO 4-4, LO 4-5, LO 4-6) (General Ledger) 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 $ 3 12 60 15 Cash Accounts Receivable Suppliers 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 71 Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals $95 $95 17 Income Tax Expense Interest Expense Supplies Expense Totals $95 $95 Transactions and events during 2018 (summarized in thousands of dollars) follow a. Borrowed $12 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $9. c. Issued additional shares of common stock on April 3 for $23. d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18. f Paid accounts payable on November 6, $13 cesg. Signed a $25 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $160 on December 8, including $40 on credit and $120 collected in cash. i. Recognized salaries and wages expense on December 9, $85 paid in cash. j. Collected accounts receivable on December 10, $24. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $5. l. Supplies counted on December 31, 2018, $10. m. Depreciation for the year on the equipment, $6. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $12 p. Income tax for the year was $8. It will be paid in 2019. (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100). Requirement Journal GeneraT Ledger IncomeStatement of Trial BalanceStatement Retained Balance Sheet Analysis Earnings Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. Unadjusted H & H TOOL, INC Income Statement For the Year Ended December 31, 2018 (in thousands)
