Question

indicated above. on cache dales se journal entries from requirement 1 to T-acos, coiculate ending balances, and pre- 2. Post the journa are an adjusted trial balance. are a classified balance sheet and income statement as of and for the month ended January 31. 3. Prepare a classifie C4-2 From Record m Recording Transactions (Including Adjusting journal Entries) to Preparing ancial Statements and Closing Journal Entries (Chapters 2, 3, and 4) Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, January 1, 2013. The annual reporting period ends December 31. The trial balance on 1. 2015, follows the amounts are rounded to thousands of dollars to simplify): Brothers Harry and January 1, 2015. fo Credit Debit $ 3 5 12 0 60 $ 6 15 Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals 0 0 0 0 0 0

Answer 1

Prepare journal entries as follows:

Date Debit Credit Account Title 1 Cash Note payable (Short-term) $12 2 Land Cash 3 Cash Common stock 4 Software | Cash 5 Supplies Accounts payable $18 6 Accounts payable Cash 7 No entry 8 Cash Accounts receivable Service revenue $120 $40 $160

9 Salaries and wages expense Cash $85 S24 10 Cash Accounts receivable Adjusting entries: 11 Amortization expense Accumulated Amortization 12 Supplies expense ($18-910) Supplies 13 Depreciation expense Accumulated Depreciation Equipment 14 Interest expense Interest payable 15 Salaries and wages expense Salaries and wages payable

____________________________________________________________________

16 Income tax expense $8 16/income tax expense te $8

Prepare t-accounts as follows:

Cash					Accounts payable
Beg. Bal.	$3	2	$9		6	$13	Beg. Bal.	$5
1	$12	4	$10				5	$18
3	$23	6	$13
8	$120	9	$85				End. Bal.	$17
10	$24
					Note payable (short-term)
End. Bal.	$65						Beg. Bal.	-
							1	$12
Accounts receivable
Beg. Bal.	$5	10	$24				End. Bal.	$12
8	$40
					Salaries and wage payable
End. Bal.	$21						Beg. Bal.	-
							15	$12
Supplies
Beg. Bal.	$12	12	$8				End. Bal.	$12
5	$18
End. Bal.	$22
Land					Interest payable
Beg. Bal.	-						Beg. Bal.	-
2	$9						14	$1
End. Bal.	$9
							End. Bal.	$1
Equipment
Beg. Bal.	$60				Income tax payable
							Beg. Bal.	-
							16	$8
End. Bal.	$60
							End. Bal.	$8
Software
Beg. Bal.	$15				Common stock
4	$10						Beg. Bal.	$71
							3	$23
End. Bal.	$25
							End. Bal.	$94
Salaries and wage expense
Beg. Bal.	-				Service revenue
15	$85						Beg. Bal.	-
15	$12						8	$160
End. Bal.	$97
							End. Bal.	$160
Depreciation expense
Beg. Bal.	-				Accumulated Depreciation
13	$6						Beg. Bal.	$6
							13	$6
End. Bal.	$6
							End. Bal.	$12
Amortization expense
Beg. Bal.	-				Accumulted Amortization
11	$5						Beg. Bal.	$5
							11	$5
End. Bal.	$5
							End. Bal.	$10
Income tax expense
Beg. Bal.	-
16	$8
End. Bal.	$8
Interest expense
Beg. Bal.	-
14	$1
End. Bal.	$1
Supplies expense
Beg. Bal.	-
12	$8
End. Bal.	$8