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	$	2
Accounts Receivable		6
Supplies		13
Land		0
Equipment		54
Accumulated Depreciation				$	5
Software		21
Accumulated Amortization					6
Accounts Payable					4
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					72
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 and events during 2018 (summarized in thousands of dollars) follow:

1. Borrowed $11 cash on March 1 using a short-term note.
2. Purchased land on March 2 for future building site; paid cash, $8.
3. Issued additional shares of common stock on April 3 for $30.
4. Purchased software on July 4, $11 cash.
5. Purchased supplies on account on October 5 for future use, $19.
6. Paid accounts payable on November 6, $12.
7. Signed a $20 service contract on November 7 to start February 1, 2019.
8. Recorded revenues of $148 on December 8, including $34 on credit and $114 collected in cash.
9. Recognized salaries and wages expense on December 9, $79 paid in cash.
10. Collected accounts receivable on December 10, $18.

Data for adjusting journal entries as of December 31:

11. Unrecorded amortization for the year on software, $6.
12. Supplies counted on December 31, 2018, $12.
13. Depreciation for the year on the equipment, $5.
14. Interest of $1 to accrue 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 2019.

Answer 1

	journal entries	Dr. ($)	Cr.($)
a	cash	11
	To notes payable short-term		11
b	land	8
	To cash		8
c	cash	30
	To common stock		30
d	software	11
	To cash		11
e	supplies	19
	To accounts payable		19
f	accounts payable	12
	To cash		12
g	no entry
h	cash	114
	accounts receivable	34
	To revenue		148
i	salaries and wages expenses	79
	To cash		79
j	cash	18
	To accounts receivable		18