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Required information The following information applies to the questions displayed below. Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H
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 Debit Credit $ 3 Cash Accounts Receivable Supplies Land 12 C Equipment Accumulated Depreciation 63 $ 6 Software 18 Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock 5 74 Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense 0 0 $101 $101 Totals events during 2018 (summarized in thousands of dollars) follow Transactions and 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 $26. d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18. Heip 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 $26. d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18. f. Paid accounts payable on November 6, $13. g.Signed a $25 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $166 on December 8, including $43 on credit and $123 collected in cash. Recognized salaries and wages expense on December 9, $88 paid in cash. j. Collected accounts receivable on December 10, $27 Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $8. I Supplies counted on December 31, 2018, $10. Depreciation for the year on the equipment, $6. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $12. p. Income tax for the year was $8. It will be paid in 2019. m. 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 A Record entry to close revenue and expense accounts to retained earnings. Required information View transaction list Journal entry worksheet
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