Question

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
Cash	$	3
Accounts Receivable		5
Supplies		12
Land		0
Equipment		58
Accumulated Depreciation				$	6
Software		16
Accumulated Amortization					7
Accounts Payable					5
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					68
Retained Earnings					8
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	$	94		$	94

Transactions and events during 2018 (summarized in thousands of dollars) follow:

Borrowed $12 cash on March 1 using a short-term note.

Purchased land on March 2 for future building site; paid cash, $9.

Issued additional shares of common stock on April 3 for $26.

Purchased software on July 4, $10 cash.

Purchased supplies on account on October 5 for future use, $18.

Paid accounts payable on November 6, $13.

Signed a $25 service contract on November 7 to start February 1, 2019.

Recorded revenues of $156 on December 8, including $38 on credit and $118 collected in cash.

Recognized salaries and wages expense on December 9, $83 paid in cash.

Collected accounts receivable on December 10, $22.

Data for adjusting journal entries as of December 31:

Unrecorded amortization for the year on software, $7.

Supplies counted on December 31, 2018, $10.

Depreciation for the year on the equipment, $6.

Interest of $1 to accrue on notes payable.

Salaries and wages earned but not yet paid or recorded, $12.

Income tax for the year was $8. It will be paid in 2019.

Prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.)

Answer 1

Unadjusted trial balance is prepared before making any year-end adjustments.

H&H Tool Inc.														H&H Tool Inc.
Trial Balance														Unadjusted Trial Balance
January 1, 2018														December 31, 2018
(in thousands)														(in thousands)
	Debit Balances	Credit balances	Mar-01	Mar-02	Apr-03	Jul-04	Oct-05	Nov-06	Nov-07	Dec-08	Dec-09	Dec-10	Total	Debit	Credit
Cash	3		12	-9	26	-10		-13		118	-83	22	63	66
Account Receivable	5									38		-22	16	21
Supplies	12						18						18	30
land	0			9									9	9
Equipment	58												0	58
Accumulated depreciation		6											0		6
Software	16					10							10	26
Accumulated depreciation		7											0		7
Accounts payable		5					18	-13					5		10
Notes Payable		0	12										12		12
salaries and Wages payable		0											0		0
Interest Payable		0											0		0
Income tax payable		0											0		0
Common Stock		68			26								26		94
Retained earnings		8											0		8
Service Revenue		0								156			156		156
Salaries and Wages Expense	0										83		83	83
Supplies Expense	0												0	0
Depreciation Expense	0												0	0
Amortization Expense	0												0	0
Interest Expense	0												0	0
Income tax expense	0												0	0
													0	293	293