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	$	3
Accounts Receivable		5
Supplies		12
Land		0
Equipment		58
Accumulated Depreciation				$	6
Software		16
Accumulated Amortization					7
Accounts Payable					5
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					68
Retained Earnings					8
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	$	94		$	94

Transactions during 2015 (summarized in thousands of dollars) follow:
1.	Borrowed $12 cash on a six-month note payable dated March 1, 2015.
2.	Purchased land for future building site; paid cash, $9.
3.	Earned revenues for 2015, $156, including $38 on credit and $118 collected in cash.
4.	Issued additional shares of stock for $3.
5.	Recognized salaries and wages expense for 2015, $83 paid in cash.
6.	Collected accounts receivable, $22.
7.	Purchased software, $10 cash.
8.	Paid accounts payable, $13.
9.	Purchased supplies on account for future use, $18.
10.	Signed a $25 service contract to start February 1, 2016.
Data for adjusting journal entries:
11.	Unrecorded amortization for the year on software, $7.
12.	Supplies counted on December 31, 2015, $10.
13.	Depreciation for the year on the equipment, $6.
14.	Accrued interest of $1 on notes payable.
15.	Salaries and wages earned but not yet paid or recorded, $12.
16.	Income tax for the year was $8. It will be paid in 2016.