Question

Required information The following information applies to the questions displayed below Brothers Harry and Herman Houbyerday 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 Lanta RSS Transactions and events during 2018 summarized in thousands of dollars) follow a Borrowed $11 cash on March 1 using a short-term note. b. Purchased and 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. Pald accounts payable on November 6, $12 g. Signed a $20 service contract on November 7 to start February 1, 2019 h. Recorded revenues of $190 on December 8, including $50 on credit and $130 collected in cash Recognized salaries and wages expense on December 9, S95 pa din cash Collected accounts receivable on December 10, $34 Data for adjusting journal entries as of December 31 Unrecorded amortization for the year on software, SS. Supplies counted on December 31 2018. $12 Depreciation for the year on the equipment. $S. interest of Sito sccrue on notes payable a: Salaries and wages earned but not yet paid or recorded. $16 p. Income tax for the year was $7. It will be paid in 2019

Answer 1

Closing journal entry:

Transaction	General Journal	Debit	Credit
1	Service revenue	$180
	Amortization Expense		$5
	Supplies expense		$20
	Depreciation expense		$5
	Interest expense		$1
	Salaries and wages expense		$108
	Income tax expense		$7
	Retained earnings		$34
	[To close revenues and expenses accounts to retained earnings]

Explanations:

i.	Service revenue	$180	Revenues
k.	Amortization expense	$5	Expenses
Supplies
	Beginning	$13
e.	Purchases	$19
l.	Ending	($12)
	Supplies expense	$20
m.	Depreciation expense	$5
n.	Interest expense	$1
Salaries and wages
i.	Paid in cash	$95
o.	Accrued	$13
	Salaries and wages expense	$108
p.	Income tax expense	$7