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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,

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]

[The following information applies to the questions displayed below.]

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, follows (the amounts are rounded to thousands of dollars to simplify):

Account Titles Debit Credit
Cash $ 2
Accounts Receivable 6
Supplies 13
Land 0
Equipment 51
Accumulated Depreciation $ 5
Software 24
Accumulated Amortization 4
Accounts Payable 4
Notes Payable (short-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Tax Payable 0
Common Stock 74
Retained Earnings 9
Service Revenue 0
Salaries and Wages Expense 0
Depreciation Expense 0
Amortization Expense 0
Income Tax Expense 0
Interest Expense 0
Supplies Expense 0
Totals $ 96 $ 96

Transactions during 2015 (summarized in thousands of dollars) follow:
1. Borrowed $11 cash on a six-month note payable dated March 1, 2015.
2. Purchased land for future building site; paid cash, $8.
3. Earned revenues for 2015, $142, including $31 on credit and $111 collected in cash.
4. Issued additional shares of stock for $4.
5. Recognized salaries and wages expense for 2015, $76 paid in cash.
6. Collected accounts receivable, $15.
7. Purchased software, $11 cash.
8. Paid accounts payable, $12.
9. Purchased supplies on account for future use, $19.
10. Signed a $20 service contract to start February 1, 2016.
Data for adjusting journal entries:
11. Unrecorded amortization for the year on software, $4.
12. Supplies counted on December 31, 2015, $12.
13. Depreciation for the year on the equipment, $5.
14. Accrued interest of $1 on notes payable.
15. Salaries and wages earned but not yet paid or recorded, $11.

16.

Income tax for the year was $7. It will be paid in 2016. INCLUDE journal entires, adjusting journal entires, T-accounts,unadjusted trial balance, adjusted trial balance,income statement, statement of retained earnings, closing journal entry, post-closing trial balance

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