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

Borrowed $13 cash on March 1 using a short-term note.

Purchased land on March 2 for future building site; paid cash, $7.

Issued additional shares of common stock on April 3 for $25.

Purchased software on July 4, $12 cash.

Purchased supplies on account on October 5 for future use, $17.

Paid accounts payable on November 6, $14.

Signed a $30 service contract on November 7 to start February 1, 2019.

Recorded revenues of $164 on December 8, including $42 on credit and $122 collected in cash.

Recognized salaries and wages expense on December 9, $87 paid in cash.

Collected accounts receivable on December 10, $26.

Data for adjusting journal entries as of December 31:

Unrecorded amortization for the year on software, $7.

Supplies counted on December 31, 2018, $11.

Depreciation for the year on the equipment, $7.

Interest of $2 to accrue on notes payable.

Salaries and wages earned but not yet paid or recorded, $11.

Income tax for the year was $9. It will be paid in 2019.

Prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.)

Answer 1

Date	Accounts Title	Debit	Credit
Mar-01	Cash	13
	Notes Payable (Short- term)		13
Mar-02	Land	7
	Cash		7
Apr-03	Cash	25
	Common Stock		25
Jul-04	Software	12
	Cash		12.0000
Oct-05	Supplies	17
	Accounts Payable		17
Nov-06	Accounts Payable	14
	Cash		14
Nov-07	No Journal Entry Required
Dec-08	Cash	122
	Accounts Receivables	42
	Service Revenue		164
Dec-09	Salaries and Wages	87
	Cash		87
Dec-10	Cash	26
	Accounts Receivables		26

Unadjusted Trail Balance:

Adjust the opening balance of accounts presented in trial balance on January 1, 2016 for the above transactions to prepare unadjusted trial balance.