In: Accounting
Brothers Cliff and Stanley 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 | |||||
Cash | $ | 2 | |||||
Accounts Receivable | 6 | ||||||
Supplies | 13 | ||||||
Land | 0 | ||||||
Equipment | 64 | ||||||
Accumulated Depreciation | $ | 5 | |||||
Software | 18 | ||||||
Accumulated Amortization | 4 | ||||||
Accounts Payable | 4 | ||||||
Notes Payable (short-term) | 0 | ||||||
Salaries and Wages Payable | 0 | ||||||
Interest Payable | 0 | ||||||
Income Tax Payable | 0 | ||||||
Common Stock | 81 | ||||||
Retained Earnings | 9 | ||||||
Service Revenue | 0 | ||||||
Salaries and Wages Expense | 0 | ||||||
Depreciation Expense | 0 | ||||||
Amortization Expense | 0 | ||||||
Income Tax Expense | 0 | ||||||
Interest Expense | 0 | ||||||
Supplies Expense | 0 | ||||||
Totals | $ | 103 | $ | 103 | |||
Transactions and events during 2018 (summarized in thousands of dollars) follow for Journal Entry:
Data for adjusting journal entries as of December 31: