Question

Required Information (The following information applies to the questions displayed below.] 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): Debit Credit 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 WOOOOoon OOOOOOO $106 $106

Just need help with the organization and possibly some of the numbers on the balance sheet

Answer 1

Answer.

Mistakes has taken place in presentation of Non Current Assets.

1. The Row bellow the current assets should be named as Non Current Assets.

2. Then, Land should be presented and the amount should be directly placed in outer column 3, $8

3.The book Value of equipment is $70 and it is recorded in column no.2

4. The accumulated depreciation (5+5) $10 should be deducted from $70, and Net amount $60, should be entered in column 3.

5. The book value of software is $26 (15+11) is recorded in 2nd column and the accumulated amortization $10 (5+5) should be deducted from $26 and Net balance $16 should be recorded in column 3. This is shown bellow.

Total Current Assets		$109
Non-Current Assets
Land		$8
Equipment	$70
Accumulated Depreciation	($10)	$60
Software	$26
Accumulated Depreciation	($10)	$16
Total Non Current Assets		$84
Total Assets		$193

Note : The student has specifically requested for mistakes arisen on the balance sheet and it is corrected.