Question

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 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 Receivable	6
Supplies	13
Land	0
Equipment	67
Accumulated Depreciation		5
Software	21
Accumulated Amortization		7
Accounts Payable		4
Notes Payable(short term)		0
Salaries and Wages Payable		0
Interest Payable		0
Income Tax Payable		0
Common Stock		84
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	109	109

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, $174, including $47 on credit and $127 collected in cash. 4. Issued additional shares of stock for $4. 5. Recognized salaries and wages expense for 2015, $92 paid in cash. 6. Collected accounts receivable, $31. 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.

Data for adjusting journal entries:

11.	Unrecorded amortization for the year on software, $7.
12.	Supplies counted on December 31, 2015, $12.
13.	Depreciation for the year on the equipment, $5.
14.	Accrued interest of $1 on notes payable.
15.	Salaries and wages earned but not yet paid or recorded, $13.
	16. Income tax for the year was $7. It will be paid in 201 2) Record journal entries for transactions (1) through (10). (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.) 3, 5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry. (Enter your answers in thousands of dollars.) Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance. Record the adjusting journal entries (11) through (16). (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.) Post the adjusting entries from requirement 4 and prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) Prepare an income statement. Prepare a statement of retained earnings. Prepare balance sheet. (Amounts to be deducted should be indicated by a minus sign.) 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.) Post the closing entry from requirement 7 and prepare a post-closing trial balance. (Enter your answers in thousands of dollars.) How much net income did H & H Tool, Inc., generate during 2015? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Profit" to 2 decimal places.) What is its current ratio? (Enter your answers in thousands of dollars.)

Answer 1

The question is very long. It is practically impossible to answer all the questions within the available time. I have completed journal entries, t-accounts, unadjusted trial balance, adjusting entries and adjusted trial balance.

______

Part 2)

The journal entries are prepared as below:

Events	Account Titles	Debit	Credit
1)	Cash	$11
	Notes Payable (Short Term)		$11
2)	Land	$8
	Cash		$8
3)	Cash	$127
	Accounts Receivable	$47
	Service Revenue		$174
4)	Cash	$4
	Common Stock		$4
5)	Salaries and Wages Expense	$92
	Cash		$92
6)	Cash	$31
	Accounts Receivable		$31
7)	Software	$11
	Cash		$11
8)	Accounts Payable	$12
	Cash		$12
9)	Supplies	$19
	Accounts Payable		$19
10)	No Journal Entry Required

_____

Part 3)

The T-Accounts are prepared as below:

Cash
Beg. Bal.	2
1)	11	8	2)
3)	127	92	5)
4)	4	11	7)
6)	31	12	8)
End. Bal.	$52

_____

Accounts Receivable
Beg. Bal.	6
3)	47	31	6)
End. Bal.	$22

_____

Supplies
Beg. Bal.	13
9)	19
		20	12)
End. Bal.	$12

_____

Land
Beg. Bal.	0
2)	8
End. Bal.	$8

_____

Equipment
Beg. Bal.	67
End. Bal.	$67

_____

Accumulated Depreciation - Equipment
		5	Beg. Bal.
		5	13)
		$10	End. Bal.

_____

Software
Beg. Bal.	21
7)	11
End. Bal.	$32

_____

Accumulated Amortization
		7	Beg. Bal.
		7	11)
		$14	End. Bal.

_____

Accounts Payable
8)	12	4	Beg. Bal.
		19	9)
		$11	End. Bal.

_____

Notes Payable
		0	Beg. Bal.
		11	1)
		$11	End. Bal.

_____

Salaries and Wages Payable
		0	Beg. Bal.
		13	15)
		$13	End. Bal.

_____

Interest Payable
		0	Beg. Bal.
		1	14)
		$1	End. Bal.

_____

Income Tax Payable
		0	Beg. Bal.
		7	16)
		$7	End. Bal.

_____

Common Stock
		84	Beg. Bal.
		4	4)
		$88	End. Bal.

_____

Retained Earnings
		9	Beg. Bal.
		29	CE1
		$38	End. Bal.

_____

Service Revenue
3)	174	174	Beg. Bal.
		$0	End. Bal.

_____

Salaries and Wages Expense
Beg. Bal.	0
5)	92
15)	13	105	CE1
End. Bal.	$0

_____

Depreciation Expense
Beg. Bal.	0
13)	5	5	CE1
End. Bal.	$0

_____

Amortization Expense
Beg. Bal.	0
11)	7	7	CE1
End. Bal.	$0

_____

Income Tax Expense
Beg. Bal.	0
16)	7	7	CE1
End. Bal.	$0

_____

Interest Expense
Beg. Bal.	0
14)	1	1	CE1
End. Bal.	$0

_____

Supplies Expense
Beg. Bal.	0
12)	20	20	CE1
End. Bal.	$0

_____

The unadjusted trial balance is prepared as below:

H & H Tool Inc.
Unadjusted Trial Balance
At December 2015
(in thousands)
Account Titles	Debit	Credit
Cash	52
Accounts Receivable	22
Supplies (13 + 19)	32
Land	8
Equipment	67
Accumulated Depreciation		5
Software	32
Accumulated Amortization		7
Accounts Payable		11
Notes Payable (Short-Term)		11
Salaries and Wages Payable
Interest Payable
Income Tax Payable
Common Stock		88
Retained Earnings		9
Service Revenue		174
Salaries and Wages Expense	92
Supplies Expense
Depreciation Expense
Interest Expense
Income Tax Expense
Totals	$305	$305

_____

The adjusting entries are given as follows:

Events	Account Titles	Debit	Credit
11)	Amortization Expense	$7
	Accumulated Amortization		$7
12)	Supplies Expense	$20
	Supplies		$20
13)	Depreciation Expense	$5
	Accumulated Depreciation		$5
14)	Interest Expense	$1
	Interest Payable		$1
15)	Salaries and Wages Expense	$13
	Salaries and Wages Payable		$13
16)	Income Tax Expense	$7
	Income Tax Payable		$7

_____

The adjusted trial balance is prepared as follows:

H & H Tool Inc.
Adjusted Trial Balance
At December 2015
(in thousands)
Account Titles	Debit	Credit
Cash	52
Accounts Receivable	22
Supplies	12
Land	8
Equipment	67
Accumulated Depreciation		10
Software	32
Accumulated Amortization		14
Accounts Payable		11
Notes Payable (Short-Term)		11
Salaries and Wages Payable		13
Interest Payable		1
Income Tax Payable		7
Common Stock		88
Retained Earnings		9
Service Revenue		174
Salaries and Wages Expense	105
Supplies Expense	20
Amortization Expense	7
Depreciation Expense	5
Interest Expense	1
Income Tax Expense	7
Totals	$338	$338