Question

Required Information The following information applies to the questions displayed below) Brothers Harry and Herman H eyerday began operations of their machine shop & H Tooling) on January 2016. The annual reporting period endis December 3 The trial balance on January 2018 follows the amounts are rounded to thousands of dollars to simply Rent Tati lated Degresistan Transactions and events during 2018 summarized in thousands of dollars follow Borrowed $11 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash. $e. c.Issued additional shares of common stock on April 3 for $24. d. Purchased software on July 4, $11 cash e Purchased supplies on account on October 5 for future use, $19. Paid accounts payable on November 6, $12 g. Signed a $20 service contract on November 7 to start February 1, 2019 h. Recorded revenues of $100 on December 8, including $50 on credit and $150 collected in cash Recognized salaries and wages expense on December 9. $95 gold in cash . Collected accounts receivable on December 10, $34. Data for adjusting journal entries as of December 31 k Unrecorded amortization for the year on software, SS. Supplies Counted on December 31 2018. $12 m. Depreciation for the year on the equipment. $5. it. Interest of Sito sccrue on notes payable a. Salaries and wages earned but not yet paid or recorded. $15 Income tax for the year was $7. It will be paid in 2019 6-s. Prepare an income statement 6-b. Prepare the statement of retained earnings 6. Prepare the balance sheet

Answer 1

6.a.

H & H Tool Inc. Income Statement For the year ended December 31, 2018 (in thousands)
Service Revenue		$ 180
Expenses
Salaries and Wages Expense	108
Depreciation Expense	5
Amortization Expense	5
Supplies Expense	20
Interest Expense	1
Income Tax Expense	7
Total Expenses		146
Net Income		34

6.b.

H & H Tool Inc. Statement of Retained Earnings For the year ended December 31, 2018 (in thousands)
Balance, January 1, 2018	$ 9
Add: Net Income	34
Less: Dividends	0
Balance, December 31, 2018	$ 43

6.c.

H & H Tool Inc. Balance Sheet December 31, 2018 (in thousands)
Assets			Liabilities and Equity
Cash	75		Accounts Payable	11
Accounts Receivable	22		Salaries and Wages Payable	13
Supplies	12		Income Taxes Payable	7
Total Current Assets		109	Notes Payable ( short term )	11
Property Plant and Equipment			Interest Payable	1
Land	8		Total Current Liabilities		43
Equipment, net	60
Software, net	16	84	Common Stock	107
			Retained Earnings	43
			Total Stockholders' Equity		150
Total Assets		193	Total Liabilities and Stockholders' Equity		193