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	$	3
Accounts Receivable		5
Supplies		12
Land		0
Equipment		63
Accumulated Depreciation				$	6
Software		18
Accumulated Amortization					8
Accounts Payable					5
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					74
Retained Earnings					8
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	$	101		$	101

Transactions and events during 2018 (summarized in thousands of dollars) follow:

1. Borrowed $12 cash on March 1 using a short-term note.
2. Purchased land on March 2 for future building site; paid cash, $9.
3. Issued additional shares of common stock on April 3 for $26.
4. Purchased software on July 4, $10 cash.
5. Purchased supplies on account on October 5 for future use, $18.
6. Paid accounts payable on November 6, $13.
7. Signed a $25 service contract on November 7 to start February 1, 2019.
8. Recorded revenues of $166 on December 8, including $43 on credit and $123 collected in cash.
9. Recognized salaries and wages expense on December 9, $88 paid in cash.
10. Collected accounts receivable on December 10, $27.

Data for adjusting journal entries as of December 31:

11. Unrecorded amortization for the year on software, $8.
12. Supplies counted on December 31, 2018, $10.
13. Depreciation for the year on the equipment, $6.
14. Interest of $1 to accrue on notes payable.
15. Salaries and wages earned but not yet paid or recorded, $12.
16. Income tax for the year was $8. It will be paid in 2019
    1, 3, 5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (o- adjusting entries Hol and closing entry. (Enter your answers in thousands of dollars.) Accounts Receivable Income Tax Payable Common Stock 3 Beg Bel Be B E B E B Cnd. De Retained Earnings Service Revenue End Be Beg. Bel Bu Dul Supplies Deg. Bul. Dou DF Cnid. Dal Cd Bar 0 Salaries and Wages Expense Depreciation Expense 00 End Hal End HAI Equipment Accumulated Depreciation HA RAI Heg HAI End Bal En el Amortization Expense Income Tax Expense bon Accumulated Amortization Beg Bal Beg Bel End, Hello Lund 0 End Bul. End. De Interest Expense Supplies Expense Hog Hal Ha Ha Notes Payable (short-term Deu Bul Deu. Dul Find Hello ndo Crd Dell Cnd Dal Sales and W es Payable Lica Dal og tal
    

Answer 1

CASH					ACCOUNTS RECEIVABLE
Beg.Bal	$ 3				Beg.Bal	$ 5
(a)	$ 12	$ 9	(b)		(h)	$ 43
( c )	$ 26	$ 10	( d)				$ 27	(j)
(h)	$ 123	$ 13	(f)
		$ 88	( i)		End.Bal	$ 21
(j)	$ 27
End.Bal	$ 71
SUPPLIES					LAND
Beg.Bal	$ 12				Beg.Bal	$ 0
( e )	$ 18				(b)	$ 9
		$ 10	(L)
End.Bal	$ 20				End.Bal	$ 9
EQUIPMENT					ACCUMULATED DEPRECIATION
Beg.Bal	$ 63				Beg.Bal		$ 6
							$ 6	(m)
End.Bal	$ 63				End.Bal		$ 12
SOFTWARE					ACCUMULATED AMORTIZATION
Beg.Bal	$ 18				Beg.Bal		$ 8
( d)	$ 10						$ 8	( k)
End.Bal	$ 28				End.Bal		$ 16
ACCOUNTS PAYABLE					NOTE -PAYABLE (Short term )
Beg.Bal		$ 5			Beg.Bal		$ 0
(f)	$ 13	$ 18	( e )				$ 12	(a)
End.Bal		$ 10			End.Bal		$ 12
SALARIES AND WAGES PAYABLE					INTEREST PAYABLE
Beg.Bal	$ 0	$ 0			Beg.Bal		$ 0
		$ 12	( o )				$ 1	(n)
End.Bal		$ 12			End.Bal		$ 1

INCOME TAX PAYABLE					COMMON STOCK
Beg.Bal		$ 0			Beg.Bal		$ 74
		$ 8	(p)				$ 26	( c )
End.Bal		$ 8			End.Bal		$ 100
RETAINED EARNINGS					SERVICE REVENUE
Beg.Bal		$ 8			Beg.Bal		$ 0
							$ 166	(h)
End.Bal		$ 8			End.Bal		$ 166
SALARIES AND WAGES EXPENSE					DEPRECIATION EXPENSE
Beg.Bal	$ 0				Beg.Bal	$ 0
( i)	$ 88				(m)	$ 6
( o )	$ 12
End.Bal	$ 100				End.Bal	$ 6
AMOTIZATION EXPENSE					INCOME TAX EXPENSE
Beg.Bal	$ 0				Beg.Bal	$ 0
( k)	$ 8				(p)	$ 8
End.Bal	$ 8				End.Bal	$ 8
INTEREST EXPENSE					SUPPLIES EXPENSE
Beg.Bal	$ 0				Beg.Bal	$ 0
(n)	$ 1				(L)	$ 10
End.Bal	$ 1				End.Bal	$ 10

NOTE 1 :  

For Entry ( e ), There is NO ENTRY for Purchased supplies on account on October 5 for future use $ 18