Question

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) onJanuary 1, 2013. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows(the amounts are rounded to thousands of dollars to simplify):

Account Titles	Debit	Credit
cash	2
accounts recievable	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 earning		9
service revenue		0
salaries and wages	0
depreciation expense	0
amortization expense	0
income tax	0
interest expense	0
supplies expense	0

Transactions during 2015 (summarized in thousands of dollars) follow:

1. Borrowed $11 cash on a six-month note payable dated March 1, 2015.

2. Purchased land for future building site; paid cash, $8.

3. Earned revenues for 2015, $168, including $44 on credit and $124 collected in cash.

4. Issued additional shares of stock for $4.

5. Recognized salaries and wages expense for 2015, $89 paid in cash.

6. Collected accounts receivable, $28.

7. Purchased software, $11 cash.

8. Paid accounts payable, $12.

9. Purchased supplies on account for future use, $19.

10. Signed a $20 service contract to start February 1, 2016.

Record journal entries for transactions (1) through (10).

Answer 1

Journal entries;
S.no.	Accounts title and explanations				Debit $	Credit $
1	Cash account Dr.				11
	Notes payable					11
2	Land Dr.				8
	Cash account					8
3	Cash account Dr.				124
	Accounts receivable Dr.				44
	Service revenue					168
4	Cash account Dr.				4
	Common Stock					4
5	Salaries and wages expenses Dr.				89
	Cash account					89
6	Cash account Dr.				28
	Accounts receivable					28
7	Software Account Dr.				11
	Cash account					11
8	Accounts payable Dr.				12
	Cash account					12
9	Supplies account Dr.				19
	Account payable					19
10	No entry