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 $ 2 6 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 $106 $106

Answer 1

8. Here's the Trial Balance, Pre-closing, Closing Adjustment Entries and Post-Closing:

Trial Balance of H&H tool Inc for the year ending December 31, 2018
Account Titles	Pre-closing		Closing Adjustment Entries		Post-closing		Explanation for Adjustment Entries
	Debit ($ in '000s)	Credit ($ in '000s	Debit ($ in '000s)	Credit ($ in '000s	Debit ($ in '000s)	Credit ($ in '000s
Cash	2		199	126	75		$ 11 credit to loan borrowing $ 24 credit to common stock $ 130 credit to Revenue $ 34 credit to AR $ 8 debit in Land $11 debit in Software $12 debit in AP $ 95 debit in Salaries & Wages Expense
AR	6		50	34	22		$50 Credit to Revenue $ 34 debit in Cash
Supplies	13		19	20	12		$ 19 Credit to AP $ 20 debit in Supplies Expense
Land	-		8		8		Credit to Cash
Equipment	70				70
Accumulated Depreciation		5		5		10	Debit in Depreciation Expense
Software	15		11		26		Credit to Cash
Accumulated amortization		5		5		10	Debit in Amortization Expense
AP		4	12	19		11	$ 19 debit in supplies $ 12 credit to Cash
Notes Payable (short Term)		-		11		11	Debit in Cash
Salaries and wages payable		-		13		13	Debit in Salaries & Wages Exp
Interest Payable		-		1		1	Debit in Interest Expense
Income Tax Payable		-		7		7	Debit in Income Tax Expense
Common stock		83		24		107	Debit in Cash
Retained Earnings		9				9
Service Revenue		-		180		180	$ 50 debit in AR $ 130 debit in Cash
Salaries and wages Expense	-		108		108		$ 95 Credit to cash $ 13 Credit to Salaries and wages payable
Depreciation Expense			5		5		Credit to Accumulated Depreciation
Amortization Expense			5		5		Credit to Accumulated amortization
Income Tax Expense			7		7		Credit to Income tax payable
Interest Expense			1		1		Credit to Interest payable
Supplies Expense			20		20		Credit to supplies
	106	106	445	445	359	359