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): Debit Credit Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-ters) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense kortization Expense Income Tax Expense Interest Expense Supplies Expense Totals Transactions and events during 2018 (summarized in thousands of dollars) follow a Borrowed 511 cash on March 1 using a short-term note b. Purchased land on March 2 for future building site: paid cash, 58 Issued additional shares of common stock on April 3 for $30 d. Purchased software on July 4, 511 cash e. Purchased supplies on account on October 5 for future use. 519 Paid accounts payable on November 6, 512 Signed a 520 service contract on November 7 to start February 1 2019 Recorded revenues of $143 on December 8, including $34 on credit and 5114 collected in Recognized salaries and wages expense on December 9, 579 paid in cash Collected accounts receivable on December 10, $18 Data for adjusting journal entries as of December 31 * Unrecorded amortization for the year on software 56 Supplies counted on December 31, 2018. $12. m. Depreciation for the year on the equipment. $5. interest of $1 to accrue on notes payable Salaries and wages earned but not yet paid or recorded. SIL Income tax for the year was 57 was be paid in 2019 13.5 and Setup Taccounts for the accounts on the balance Enter beging balances and post the transactions ting entries and closing entry Enter your answers in thousands of dollars)

Answer 1

T-Accounts:
DEBIT	AMOUNTS $	CREDIT	AMOUNTS $
Cash a/c
OB	2	b	8
a	11	d	11
c	30	f	12
h	114	i	79
j	18	CB	65
AR a/c
OB	6	j	18
h	34	CB	22
Supplies a/c
OB	13	l	20
e	19	CB	12
Land a/c
b	8
Equipment a/c
OB	54
Acc Dep a/c
CB	10	OB	5
		m	5
Software a/c
OB	21	CB	32
d	11
Acc Amortisation a/c
CB	12	OB	6
		k	6
AP a/c
f	12	OB	4
CB	11	e	19
Notes Payable (ST) a/c
		a	11
Salaries & Wages payable a/c
		o	11
Interest payable a/c
		n	1
Income Tax payable a/c
		p	7
Common Stock a/c
CB	102	OB	72
		c	30
Retained Earnings a/c
		OB	9
Service Revenue a/c
		h	148
salaries & Wages exp. a/c
i	79	CB	90
o	11
Depreciation exp. a/c
m	5
Amortisation exp. a/c
k	6
Income tax expense a/c
p	7
Interest exp. a/c
n	1
Supplies exp. a/c
l	20

Closing Journal Entries:
Date	Acc Titles	Debit $	Credit $
1	Service Revenue	148
	Income Summary		148
	(revenue transferred to Income summary)
2	Income Summary	129
	Salaries & Wages exp.		90
	Depreciation exp.		5
	Amortisation exp.		6
	Income tax exp.		7
	Interest exp.		1
	Supplies exp.		20
	(expenses transferred to Income Summary)