Question

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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 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.)

Answer 1

Journal Entry
Date	Particulars	L.F	Amount ($)	Amount ($)
01-Mar	Cash		$12.00
	Note Payable			$12.00
	(For cash borrowed against note payable)
02-Mar	Land		$9.00
	Cash			$9.00
	(For land purchased)
03-Apr	Cash		$26.00
	CommonStock			$26.00
	(For additional shares issued)
04-Jul	Software		$10.00
	Cash			$10.00
	For Purchase Software
05-Oct	Supplies		$18.00
	Account Payable			$18.00
	For Purchase of Supplies
06-Nov	Account Payable		$13.00
	Cash			$13.00
	Payment made agst Account Payable
08-Dec	Cash		$118.00
	Accounts Receivable		$38.00
	Service Revenue			$156.00
	(For services provided)
09-Dec	Salaries and wages expense		$83.00
	Cash			$83.00
	(For paid salaries and wages expense)
10-Dec	Cash		$22.00
	Accounts Receivable			$22.00
	(For collected AR)
31-Dec	Amortization expense		$7.00
	Accumulated amortization			$7.00
	(For amortization expense recorded)
31-Dec	Supplies Expense		$8.00
	Supplies			$8.00
	For Recording Supplies Expense
31-Dec	Depreciation Expense		$6.00
	Accumulated Depreciation			$6.00
	To Record Depreciation expense
31-Dec	Interest Exoense		$1.00
	Interest Payable			$1.00
	To Record Interets Expense
31-Dec	Salaries and wages expense		$12.00
	Salaries and wages payable			$12.00
	(For salaries and wages recorded)
31-Dec	Income Tax Expense		$8.00
	Income Tax Payable			$8.00
	To Record Income Tax Expense