Question

how to prepare a t-account with the following information 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 58 Accumulated Depreciation $ 6 Software 16 Accumulated Amortization 7 Accounts Payable 5 Notes Payable (short-term) 0 Salaries and Wages Payable 0 Interest Payable 0 Income Tax Payable 0 Common Stock 68 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 $ 94 $ 94 Transactions and events during 2018 (summarized in thousands of dollars) follow: Borrowed $12 cash on March 1 using a short-term note. Purchased land on March 2 for future building site; paid cash, $9. Issued additional shares of common stock on April 3 for $26. Purchased software on July 4, $10 cash. Purchased supplies on account on October 5 for future use, $18. Paid accounts payable on November 6, $13. Signed a $25 service contract on November 7 to start February 1, 2019. Recorded revenues of $156 on December 8, including $38 on credit and $118 collected in cash. Recognized salaries and wages expense on December 9, $83 paid in cash. Collected accounts receivable on December 10, $22. Data for adjusting journal entries as of December 31: Unrecorded amortization for the year on software, $7. Supplies counted on December 31, 2018, $10. Depreciation for the year on the equipment, $6. Interest of $1 to accrue on notes payable. Salaries and wages earned but not yet paid or recorded, $12. Income tax for the year was $8. It will be paid in 2019.

Answer 1