In: Accounting
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 | 68 | |||||
Accumulated Depreciation | $ | 7 | ||||
Software | 24 | |||||
Accumulated Amortization | 8 | |||||
Accounts Payable | 6 | |||||
Notes Payable (short-term) | 0 | |||||
Salaries and Wages Payable | 0 | |||||
Interest Payable | 0 | |||||
Income Tax Payable | 0 | |||||
Common Stock | 83 | |||||
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 | $ | 111 | $ | 111 | ||
Transactions and events during 2018 (summarized in thousands of dollars) follow:
Data for adjusting journal entries as of December 31:
A)Record journal entries for transactions (a) through (j)
B) 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.
c)Prepare an unadjusted trial balance.
D)Record the adjusting journal entries (k) through (p).
E)Post the adjusting entries from requirement 4 and prepare an adjusted trial balance.