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): Account Titles Debit Credit Canh $2 Accounts Receivable 6 Supplies 13 Land 0 Equipment 57 Accumulated Depreciation Software Accumulated Amortization Recounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenge salaries and Wagon Expense Depreciation Expense Amortization Expense 0 Income Tax Expense 0 Interest Expense 0 Supplies Expense 0 Totale 596 18 8 0 0 0 70 9 0 D $96 Transactions and events during 2018 (summarized in thousands of dollars) follow: 13 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. Paid accounts payable on November 6, $12. g. 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. 1. 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 paid or recorded, $11. p. Income tax for the year was $7. 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 . Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. General Journal Debit Credit Transaction 1
