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		57
Accumulated Depreciation				$	5
Software		18
Accumulated Amortization					8
Accounts Payable					4
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					70
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, $154, including $37 on credit and $117 collected in cash.
4.	Issued additional shares of stock for $4.
5.	Recognized salaries and wages expense for 2015, $82 paid in cash.
6.	Collected accounts receivable, $21.
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, $8.
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.

C4-2 Part 3 3. Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance (Enter your answers in thousands of dollars.) H & H TOOL, INC Unadjusted Trial Balance At December 31, 2015 (in thousands) Account Titles Debit Credit 42 Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Interest Expense 12 57 10 29 4 74 154 Income Tax Payable Common Stock Beg. Bal 0 0 Beg. Bal 70 End. Bal End. Bal 74 Retained Earnings Service Revenue Beg. Bal Beg. Bal E1 154 154 End. Bal End. Bal Depreciation Expense Amortization Expense Beg. Bal 13 0 Beg. Bal 5 CE1 End. Bal End. Bal Income Tax Expense Interest Expense Beg. Bal 16 0 Beg. Bal 7 CE1 1 CE1 End. Bal End. Bal Salaries and Wages Expense Supplies Expense Beg. Bal 0 Beg. Bal 12 82 93 CE1 20 20 CE1 15 End. Bal End. Bal Accounts Payable Notes Payable Beg. Bal 4 Beg. Bal 0 12 19 End. Bal End. Bal Salaries and Wages Payable Interest Payable Beg. Bal 0 Beg. Bal 0 11 15 1 14 End. Bal End. Bal Income Tax Payable Common Stock Beg. Bal 0 0 Beg. Bal 70 7 16 End. Bal End. Bal 74 Retained Earnings Service Revenue Beg. Bal Beg. Bal CE1 0 154 154 End. Bal End. Bal Cash Accounts Receivable Beg. Bal 2 Beg. Bal 37 21 82 12 End. Bal End. Bal 42 Supplies Land Beg. Bal 13 Beg. Bal 0 19 20 12 End. Bal 12 End. Bal Equipment Accumulated Depreciation-Equipment Beg. Bal 57 Beg. Bal 5 13 End. Bal 57 End. Bal 10 Software Accumulated Amortization Beg. Bal 18 Beg. Bal 8 11 End. Bal 29 End. Bal Accounts Payable Notes Payable Beg. Bal 4 Beg. Bal 12 19 End.Bal End. Bal