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): Account Titles Cash Debit Credit $ 4 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 4 11 59 $ 7 14 6 6 $92 $92 Totals

Answer 1

In the books of H and H Tool Inc.

Journal

($ in '000)

Sl. No.	Date	Particulars	Debit ($)	Credit ($)
a.	01.03.2018	Cash A/c Dr. To Notes Payable A/c. (being cash borrowed)	13	13
b.	02.03.2018	Land A/c Dr. To Cash A/c (Being land purchased)	7	7
c.	03.04.2018	Cash A/c Dr. To Common Stock A/c. (being additional stock issued)	25	25
d.	04.04.2018	Software A/c Dr. To Cash A/c (being software purchased)	12	12
e	05.10.2018	Supplies A/c Dr. To Accounts Payable (being supplies purchase)	17	17
f	06.11.2018	Accounts Payable A/c Dr. To Cash (being accounts payable paid)	14	14
g	07.11.2018	No entry for signing of sales contract as transaction occur afterF.y2018
h.	08.12.2018	Cash A/c Dr Accounts Receivable A/c Dr. To Service Revenue A/c (being sales recorded)	119 39	158
i	09.12.2018	Salaries and wages A/c. Dr. To Cash A/c (Salaries and wages paid in cash)	84	84
j	10.12.2018	Accounts Receivable A/c Dr. To Cash (being accounts receivable collected)	23	23
k	31.12.2018	Amortization Expense A/c Dr To Accumulated Amortization A/c. (amortization charged on software)	14	14
l	31.12.2018	Supplies Expense A/c Dr To Supplies A/c (being supplies utilized charged off)	17	17
m	31.12.2018	Depreciation Expense A/c Dr To Accumulated Depreciation A/c (depreciation charged)	7	7
n	31.12.2018	Interest Expense A/c Dr. To Interest Payable A/c (interest charged)	2	2
o	31.12.2018	Salaries & wages A/c Dr. To Salaries & Wages Payable A/c. (salaries and wages not paid recorded)	12	12
p	31.12.2018	Income Tax expense A/c Dr. To Income Tax Payable A/c (Income Tax Expense Recorded)	9	9

H & H TOOL Inc
Adjusted Trial Balance
(In thousands)
Account tiles	Debit ($)	Credit ($)
Cash	67
Accounts Receivable	20
Supplies	11
Land	7
Equipment	59
Accumulated Depreciation		14
Software	26
Accumulated Amortization		20
Accounts Payable		9
Notes Payable(short term)		13
Saalaries and wages Payable		12
Interest Payable		2
Income Tax Payable		9
Common Stock		91
Retained Earnings		7
Service Revenue		158
Salaries and Wages Expenses	96
Supplies Expense	17
Depreciation Expense	7
Amortization expense	14
Interest Expense	2
Income Tax Expense	9
Total	335	335