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	$	4
Accounts Receivable		4
Supplies		11
Land		0
Equipment		62
Accumulated Depreciation				$	7
Software		18
Accumulated Amortization					7
Accounts Payable					6
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					72
Retained Earnings					7
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	$	99		$	99

Transactions during 2015 (summarized in thousands of dollars) follow:
1.	Borrowed $13 cash on a six-month note payable dated March 1, 2015.
2.	Purchased land for future building site; paid cash, $7.
3.	Earned revenues for 2015, $164, including $42 on credit and $122 collected in cash.
4.	Issued additional shares of stock for $2.
5.	Recognized salaries and wages expense for 2015, $87 paid in cash.
6.	Collected accounts receivable, $26.
7.	Purchased software, $12 cash.
8.	Paid accounts payable, $14.
9.	Purchased supplies on account for future use, $17.
10.	Signed a $30 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, $11.
13.	Depreciation for the year on the equipment, $7.
14.	Accrued interest of $2 on notes payable.
15.	Salaries and wages earned but not yet paid or recorded, $11.
16.	Income tax for the year was $9. It will be paid in 2016.

Answer 1

Since other than transactions nothing is mentioned so , Journal entries are prepared as under:

Date	Particulars	L.F	Amount ($)	Amount ($)
2015
1	Cash		13
	Note Payable			13
	(For cash borrowed against note payable)
2	Land		7
	Cash			7
	(For land purchased)
3	Cash		122
	Accounts Receivable		42
	Service Revenue			164
	(For services provided)
4	Cash		2
	CommonStock			2
	(For additional shares issued)
5	Salaries and wages expense		87
	Cash			87
	(For paid salaries and wages expense)
6	Cash		26
	Accounts Receivable			26
	(For collected AR)
7	Software		12
	Cash			12
	(For software purchased)
8	Accounts Payable		14
	Cash			14
9	Supplies		17
	Accounts Payable			17
	(For supplies purchased on account)
10	No entry		0
11	Amortization expense		7
	Accumulated amortization			7
	(For amortization expense recorded)
12	Supplies expense		17
	Supplies			17
	(For supplies expense recorded)
13	Depreciation		7
	Accumulated dep			7
	(For depreciation recorded)
14	Interest expense		2
	Interest payable			2
	(For interest recorded)
15	Salaries and wages expense		11
	Salaries and wages payable			11
	(For salaries and wages recorded)
16	Income tax expense		9
	income tax payable			9