Question

Required information [The following information applies to the questions displayed below) Part 7 of 9 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: DO Debit Credit Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Artiration Accounts Payable Notes Payable (short-term) Salaries and ages Payable Interest Payable Income Tax Payable Comon Stock Retained Earnings Service Revenue Salaries and weges Expense Depreciation Expense tatione Income Tax Expense Interest Expense Supplies Expense Totals

Answer 1

($ in 000s) Debit Credit $13 $13 $25 $25 $12 $12 $17 $17 Step 1 Journal entry for Transaction for 2018 Date Particulars 1-Mar-18 Cash Notes Payable (To Record borrowing of cash) 2-Mar-18 Land Cash ( To Record purchase of land) 3-Apr-18 Cash Common Stock (To Record issue of common sck) 4-Jul-18 Software Cash (To Record purchase of software) 5-Oct-18 Supplies Accounts Payable (To Record purchase of supplies) 6-Nov-18 Accounts Payable Cash ( To Record payment made) 7-Nov-18 No Entry No Entry (On signing of service contract) 8-Dec-18 Accounts Receivable Cash Service Revenue (To Record sales) 9-Dec-18 Salaries and Wages Expense Cash (To Record salary expense) 10-Dec-18 Cash Accounts Receivable ( To Record payment received) $14 $14 $39 $119 $158 $84 $84 $23 $23

Step 2 Adjusting Entries ($ in 000) Debit Credit Date Particulars 31-Dec-18 Amortisation Expense Accumulated Amortisation (To Record Amortisation on sofware) 31-Dec-18 Supplies Expesne Supplies (To Record supplies Expense) 31-Dec-18 Depreciation Expense Accumulated Depreciation (To Record Depreciation on Equipment) 31-Dec-18 Interest Expense Interest Payable (To Record interest accrue on notes payable) 31-Dec-18 Salaries and Wages Expense Salaries and Wages Payable (To Record interest accrue on notes payable) 31-Dec-18 Income Tax Expense Income Tax Payable (To Record income tax provision) $12 Working Supplies Expense 1 Supplies Opening as on 01/01/2018 Add: Purchases $11 $17 $28 ($11) $17 Less: Closing as on 31/12/2018 Supplies Expense

Step3 Hand H Tool Inc ($ in 000s) Trial Balance January 1, 2018 Debit Credit Entry Adjustment Adjusted Trail Balance December 31, 2018 Debit Credit Debit $180 $39 Credit $117 $4 $20 Particulars Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortisation Accounts Payable Notes Payable Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortisation Expense Interest Expense Income Tax Expense Supplies Expesne $66 $92 1067 $327

Ans ($ in 000s) Debit Credit $158 Closing Entries Date Particulars 31-Dec-18 Service Revenue Salaries and Wages Expense Depreciation Expense Amortisation Expense Interest Expense Income Tax Expense Supplies Expesne Income Summary (To close all revenue and expense accounts)