Question

C4-2 From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, LO 4-5, LO 4-6]

[The following information applies to the questions displayed below.]

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		51
Accumulated Depreciation				$	5
Software		24
Accumulated Amortization					4
Accounts Payable					4
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					74
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	$	96		$	96

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, $142, including $31 on credit and $111 collected in cash.
4.	Issued additional shares of stock for $4.
5.	Recognized salaries and wages expense for 2015, $76 paid in cash.
6.	Collected accounts receivable, $15.
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, $4.
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, $11.
16.	Income tax for the year was $7. It will be paid in 2016. INCLUDE journal entires, adjusting journal entires, T-accounts,unadjusted trial balance, adjusted trial balance,income statement, statement of retained earnings, closing journal entry, post-closing trial balance

Answer 1

S.no	Particulars	Debit	Credit
1	Cash	$          11.00
	Notes Payable		$          11.00
	(notes payable due for cash received)
2	Land	$            8.00
	Cash		$            8.00
	(purchased land against cash recorded)
3	Cash	$        111.00
	Accounts Receivable	$          31.00
	Sales		$        142.00
	(SALES recorded)
4	Cash	$            4.00
	Common Stock		$            4.00
	(common stock issued)
5	Salaries and Wages	$          76.00
	Cash		$          76.00
	(salaries paid recorded)
6	Cash	$          15.00
	Accounts Receivable		$          15.00
	(AR due received)
7	Software A/c	$          11.00
	Cash		$          11.00
	(Purchased software for cash)
8	Accounts Payable	$          12.00
	Cash		$          12.00
	(AP due paid)
9	Supplies	$          19.00
	Accounts Payable		$          19.00
	(Supplied purchased on account recorded)
10	No entry
11	Amortization Expenses-Software	$            4.00
	Accumulated Amortization- Software		$            4.00
	(Expenses of amortization recorded)
12	Supplies Expenses	$          20.00
	Supplies		$          20.00
	(Being supplies on hand is $20 at the year end so , the remaining amount is transferred to expenses)
13	Depreciation Expenses-Equipment	$            5.00
	Accumulated Depreciation-Equipment		$            5.00
	(being depreciation expense for the year recorded)
14	Interest Expense	$            1.00
	Accured interest		$            1.00
	(Being interest payable on notes payable)
15	Salaries & Wages Expenses	$          11.00
	Salaries & Wages Expenses Payable		$          11.00
	(being salries & wages payable)