Question 7

19 [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, 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 Cash 53 Accounts Receivable 5 Supplies 12 Land e Equipment 55 Accumulated Depreciation Software Accumulated Amortization 5 Accounts Payable 5 Notes Payable (short-term Salaries and wages Payable Interest Payable Income Tax Payable Common stock 70 Retained Earnings Service Revenue Salaries and wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense supplies Expense Totals 594 $94 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 $29. 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 n Recorded revenues of $150 on December 8, including $35 on credit and $115 collected in cash 1. Recognized salaries and wages expense on December 9, $80 paid in cash. J. Collected accounts receivable on December 10, $19 Data for adjusting Journal entries as of December 31 Data for adjusting Joumal entries as of December 31: k Unrecorded amortization for the year on software. $5. Supplies counted on December 31, 2018, $10. m. Depreciation for the year on the equipment, $6. n. Interest of $ito accrue on notes payable o Salaries and wages eamed but not yet pald or recorded, $12 p. Income tax for the year was $8. It will be paid in 2019. 7. Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) View transaction list Journal entry worksheet