Required information 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 Cash Accounts Receivable Debit Credit $ 4 4 Supplies Land 11 C Equipment Accumulated Depreciation Software Accumulated Anortization 56 $ 7 37 ayable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings ACcounts C C 68 Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense oo00o Retained Earnings 0 Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense C 0 0 0 C Supplies Expense $92 $92 Totals Transactions and events during 2018 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $7 c. Issued additional shares of common stock on April 3 for $28. d. Purchased software on July 4, $12 cash e. Purchased supplies on account on October 5 for future use, $17 f Paid accounts payable on November 6, $14. g. Signed a $30 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $152 on December 8, including $36 on credit and $116 collected in cash. i Recognized salaries and wages expense on December 9, $81 paid in cash. J. Collected accounts receivable on December 10, $20 Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $4. Supplies counted on December 31, 2018, $11 Transactions and events during 2018 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $7 c. Issued additional shares of common stock on April 3 for $28. d. Purchased software on July 4, $12 cash. e. Purchased supplies on account on October 5 for future use, $17 f Paid accounts payable on November 6, $14. g. Signed a $30 service contract on November 7 to start February 1, 2019 h. Recorded revenues of $152 on December 8, including $36 on credit and $116 collected in cash. i Recognized salaries and wages expense on December 9, $81 paid in cash. jCollected accounts receivable on December 10, $20. Data for adjusting journal entries as of December 31 k. Unrecorded amortization for the year on software, $4. I Supplies counted on December 31, 2018, $11. Depreciation for the year on the equipment, $7 n. Interest of $2 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $13. p. Income tax for the year was $9. It will be paid in 2019 m. H&H TOOL, INC. Unadjusted Trial Balance (in thousands) Debit Credit 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 Taxes Payable 1 2 3 4 6 Record the unrecorded amortization for the year on software, $4 Note: Enter debits before credits. Transaction General Journal Debit Credit k. 6 3 Record the adjusting entry for supplies counted on December 31, 2018 for $11. Note: Enter debits before credits. Debit Credit General Journal Transaction LO 6 2 4 Record the adjusting entry for depreciation for the year on the equipment, $7. Note: Enter debits before credits. Transaction General Journal Debit Credit m. 2 3 5 6 Record the adjusting entry for accrued interest for $2 on notes payable. Note: Enter debits before credits. Transaction General Journal Debit Credit n. Record entry Clear entry View general journal 5 2 1 Record the adjusting entry for salaries and wages earned but not paid for $13. Note: Enter debits before credits. Credit Debit General Journal Transaction View general journal Clear entry Record entry > 3
