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 57 $ 5 18 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 Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals 8 4 @ 0 @ 70 9 @ @ 0 @ $96 $96 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. Paid 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. i. 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. /. 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. No Transaction General Journal Debit Credit 1 a. 11 Cash Notes Payable (short-term) 11 2 b. Land 8 Cash 8 3 C. Cash 27 Common Stock 27 4 d. 11 Software Cash 11 5 e. 19 Supplies Accounts Payable 19 6 f. 12 Accounts Payable Cash 12 7 g. No Journal Entry Required 8 h. Cash 117 37 Accounts Receivable Service Revenue 154 9 i. 82 Salaries and Wages Expense Cash 82 10 j. Cash 21 Accounts Receivable 21 Cash 2 Accounts Receivable 6 Beg. Bal. (n) 11 37 210) Beg. Bal. (a) (c) (h) 0 27 8 (6) 11 (d) 12 (6) 82 0 117 21 End. Bal. 22 End. Bal. 65 Land Supplies 13 Beg. Bal. 0 Beg. Bal (b) 19 8 End. Bal 32 End. Bal. Equipment 57 Beg. Bal. Beg. Bal. Accumulated Depreciation 5 5 (m) End. Bal. 57 End. Bal. 10 Software Accumulated Amortization 18 Beg. Bal. 8 Beg. Bal. (d) 11 8(K) End. Bal. 29 End. Bal. 16 Accounts Payable 4 Beg. Bal. (1) Beg. Bal. (a) Notes Payable (short-term) 0 11(a) 12 19(e) End. Bal. 11 End. Bal. 11 Interest Payable Beg. Bal. Salaries and Wages Payable 0 82 0 Beg. Bal. 0 1 (n) End. Bal. 82 End. Bal. 1 Income Tax Payable Common Stock Beg. Bal 0 Beg. Bal. 70 27 (c) End. Bal. End. Bal. 97 Retained Earnings Service Revenue 0 Beg Bal Beg. Bal (h) 154 End. Bal. End. Bal. 154 Salaries and Wages Expense 0 Depreciation Expense 0 Beg. Bal. Beg. Bal. (0) (0) 82 11 End. Bal. 93 End. Bal. 0 Income Tax Expense Amortization Expense 0 Beg. Bal. 0 Beg. Bal. (p) End. Bal. 0 End. Bal. Supplies Expense Interest Expense 0 Beg. Bal Beg. Bal. 0 18 End. Bal. 0 End. Bal. 18 Credit $ 5 8 H&H TOOL, INC. Unadjusted Trial Balance For the Month Ended December 31, 2018 (in thousands) Account Titles Debit Cash $ 65 Accounts Receivable 22 Supplies 32 Land 8 Equipment 57 Accumulated Depreciation Software 29 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 82 Supplies Expense 0 Depreciation Expense 0 Interest Expense Income Tax Expense 0 Totals 295 11 11 0 0 0 97 9 154) 0 $ 295 4. Record the adjusting journal entries (k) through (p). (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 View journal entry worksheet No Debit Credit Transaction k. 1 General Journal Amortization Expense Accumulated Amortization 8 8 2 1. 20 Supplies Expense Supplies 20 3 m. 5 Depreciation Expense Accumulated Depreciation 5 4 n. 1 Interest Expense Interest Payable 1 5 0. 11 Salaries and Wages Expense Salaries and Wages Payable 11 6 P. 7 Income Tax Expense Income Tax Payable 7 H & H TOOL, INC. Adjusted Trial Balance 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 Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Total $ 0 $ 0