Question

Required information The following information applies to the questions displayed below) Brothers Harry and Herman Howeverday began operations of the machine shop M&M Tooling) on Jury 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 simply Dest Coast Related Depression Satos D o st te Salaries and Wegea apenas Anna Ex Lapenas Transactions and events during 2018 summarized in thousands of dollars follow Borrowed $11 cash on March using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $a. 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 $130 collected in cash Recognized salaries and wages expense on December 9, 995 pa din cash . Collected accounts receivable on December 10, $34. Data for adjusting journal entries as of December 31 kUnrecorded amortization for the year on software. $5. Supplies counted on December 31 2018. $12 Depreciation for the year on the equipment. $S. Interest of $1 to accrue 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 4. Record the susting journal entries through al no entry is required for a transaction event, select "No Journal Entry Required in the first account field. Enter your answers in thousands of dollars)

Answer 1

	Adjusting entries
K	Amortization expense	$5
	Accumulated amortization		$5
	(being record unrecorded amortization)
l	Supplies expense	$12
	Supplies		$12
	(being record supplies counted)
m	Depreciation	$5
	Accumulated depreciation		$5
	(being record depreciation)
n	Interest expense	$1
	Interest payable		$1
	(being record accrued interest)
o	Salaries and wages expense	$13
	Salaries and wages payable		$13
	(being record salaries and wages )
p	Income tax	$7
	Income tax payable		$7
	(being record income tax)