Required information 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, 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): Debit Credit $ 2 6 13 0 57 Account Titles Canh Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Noten Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Barnings Service Revenue Salaries and Wages Ixpende Depreciation Expense Amortization Expense Income Tax Expendo Interest Expense Supplies Expense Totain 0 70 0 0 0 0 0 0 0 $96 596 Transactions and events during 2018 (summarized in thousands of dollars) follow - DA Transactions and events during 2018 (summarized in thousands of dollars) follow: a. Borrowed $11 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $8. c Issued additional shares of common stock on April 3 for $27. d. Purchased software on July 4, $11 cash. e. Purchased supplies on account on October 5 for future use. $19. f. Pald accounts payable on November 6, $12. 9. Signed a $20 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $154 on December 8, including $37 on credit and $117 collected in cash. Recognized salaries and wages expense on December 9, $82 paid in cash, J. Collected accounts receivable on December 10, $21. Data for adjusting journal entries as of December 31: k Unrecorded amortization for the year on software $8. 1. Supplies counted on December 31, 2018. $12. m. Depreciation for the year on the equipment, $5. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet pald or recorded, $11. p. Income tax for the year was $7. It will be paid in 2019, C4-2 Part 8 B. Post the closing entry from requirement and prepare a post.closing trial balance (Enter your answers in thousands of dollars.) H&H TOOL, INC Post Closing Trial Balance 0 Required information Debit Credit (in thousands) Account Titles Cash Accounts Receivable Supplies 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 Dividends Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Totais 0 Prev
