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		69
Accumulated Depreciation				$	6
Software		24
Accumulated Amortization					4
Accounts Payable					5
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					90
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	$	113		$	113

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

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

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

c) Issued additional shares of common stock on April 3 for $23.

d) Purchased software on July 4, $10 cash.

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

f) Paid accounts payable on November 6, $13.

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

h) Recorded revenues of $178 on December 8, including $49 on credit and $129 collected in cash.

i) Recognized salaries and wages expense on December 9, $94 paid in cash.

j) Collected accounts receivable on December 10, $33.

Data for adjusting journal entries as of December 31:

k) Unrecorded amortization for the year on software, $4.

l) Supplies counted on December 31, 2018, $10.

m) Depreciation for the year on the equipment, $6.

n) Interest of $1 to accrue on notes payable.

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

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

1, 3, 5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)-(j), adjusting entries (k)-(p), and closing entry. (Enter your answers in thousands of dollars.)

Answer 1

Answer

Cash
Beg. Bal	3	02-Mar	9
01-Mar	12	04-Jul	10
03-Apr	23	06-Nov	13
08-Dec	129	09-Dec	94
10-Dec	33
Total	200	Total	126
Balance	74
Equipment
Beg. Bal	69
Total	69	Total	-
Balance	69
Supplies expense
Beg. Bal	-
31-Dec	20
Total	20	Total	-
Balance	20

Accounts Receivable
Beg. Bal	5	10-Dec	33
08-Dec	49
Total	54	Total	33
Balance	21
Software
Beg. Bal	24
04-Jul	10
Total	34	Total	-
Balance	34
Depreciation expense
Beg. Bal	-
31-Dec	6
Total	6	Total	-
Balance	6

Supplies
Beg. Bal	12	31-Dec	20
05-Oct	18
Total	30	Total	20
Balance	10
Salaries and Wages Expense
Beg. Bal	-
09-Dec	94
31-Dec	12
Total	106	Total	-
Balance	106
Interest Expense
Beg. Bal	-
31-Dec	1
Total	1	Total	-
Balance	1

Land
Beg. Bal	-
02-Mar	9
Total	9	Total	-
Balance	9
Amortization Expense
Beg. Bal	-
31-Dec	4
Total	4	Total	-
Balance	4
Income Tax expense
Beg. Bal	-
31-Dec	12
Total	12	Total	-
Balance	12

Acc. Depreciation
		Beg. Bal	6
		31-Dec	6
Total	-	Total	12
		Balance	12
Retained Earnings
		Beg. Bal	8
Total	-	Total	8
		Balance	8
Salaries and Wages Payable
		Beg. Bal	-
		31-Dec	12
Total	-	Total	12
		Balance	12

Acc. Amortization
		Beg. Bal	4
		31-Dec	4
Total	-	Total	8
		Balance	8
Short Term Notes
		Beg. Bal	-
		01-Mar	12
Total	-	Total	12
		Balance	12
Income Tax payable
		Beg. Bal	-
		31-Dec	12
Total	-	Total	12
		Balance	12

Accounts Payable
06-Nov	13	Beg. Bal	5
		05-Oct	18
Total	13	Total	23
		Balance	10
Service Revenue
		Beg. Bal	-
		08-Dec	178
Total	-	Total	178
		Balance	178

Common Stock
		Beg. Bal	90
		03-Apr	23
Total	-	Total	113
		Balance	113
Interest Payable
		Beg. Bal	-
		31-Dec	1
Total	-	Total	1
		Balance	1

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