Question

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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	$	3
Accounts Receivable		5
Supplies		12
Land		0
Equipment		60
Accumulated Depreciation				$	6
Software		15
Accumulated Amortization					5
Accounts Payable					5
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					71
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	$	95		$	95

Transactions during 2015 (summarized in thousands of dollars) follow:
1.	Borrowed $12 cash on a six-month note payable dated March 1, 2015.
2.	Purchased land for future building site; paid cash, $9.
3.	Earned revenues for 2015, $160, including $40 on credit and $120 collected in cash.
4.	Issued additional shares of stock for $3.
5.	Recognized salaries and wages expense for 2015, $85 paid in cash.
6.	Collected accounts receivable, $24.
7.	Purchased software, $10 cash.
8.	Paid accounts payable, $13.
9.	Purchased supplies on account for future use, $18.
10.	Signed a $25 service contract to start February 1, 2016.
Data for adjusting journal entries:
11.	Unrecorded amortization for the year on software, $5.
12.	Supplies counted on December 31, 2015, $10.
13.	Depreciation for the year on the equipment, $6.
14.	Accrued interest of $1 on notes payable.
15.	Salaries and wages earned but not yet paid or recorded, $12.
16.	Income tax for the year was $8. It will be paid in 2016.

I need help with preparing an income statement, retained earnings statement, the balance sheet, and the post-closing trial balance. I also need help checking my answers for my adjusted trial balance with the adjusted entries included.

thank you

Answer 1

			Entries		Adjusted TB
Account Titles	Debit	Credit	Debit	Credit	Debit	Credit
Cash	3		42		45
Accounts Receivable	5		16		21
Supplies	12		-2		10
Land	0		9		9
Equipment	60				60
Accumulated Depreciation		6		6		12
Software	15		10		25
Accumulated Amortization		5		5		10
Accounts Payable		5		5		10
Notes Payable (short-term)		0		12		12
Salaries and Wages Payable		0		12		12
Interest Payable		0		1		1
Income Tax Payable		8				8
Common Stock		71		3		74
Retained Earnings		8				8
Service Revenue		0		160		160
Salaries and Wages Expense	0		97		97
Depreciation Expense	0		6		6
Amortization Expense	0		5		5
Income Tax Expense	8				8
Interest Expense	0		1		1
Supplies Expense	0		20		20
Totals	103	103	204	204	307	307

Income statement
Service revenue	160
Expenses:
Salaries and Wages Expense	97
Depreciation Expense	6
Amortization Expense	5
Interest Expense	1
Supplies Expense	20
Income tax expenses	8
Total expenses	137
net profit	23
Statement of retained earnings
Opening balance	8
Add Net profit	23
Closing balance	31

Balance sheet
Equity and liabilities		Assets
Current liabilities		Current assets
Accounts Payable	10	Cash	45
Notes Payable (short-term)	12	Accounts Receivable	21
Salaries and Wages Payable	12	Supplies	10
Interest Payable	1		76
Income Tax Payable	8
	43	Non-current assets
		Land	9
Equity		Equipment, Net	48
Common Stock	74	Software, Net	15
Retained Earnings	31		72
	105
Total	148	Total	148