Question

C4-2 From Recording Transactions including Adjusting Journal Entries to Preparing Financial Statements and Closing Journal Entries (Chapters 2.2 and 4 LO 2-39.339.410.429.439.449.459.469 Brothers Harry and Herman Hauserday began operations of the machine shop 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 simply Account Titles Debt Credit 53 Accounts Receivable Supplies Land Equipe Accumulated Depreciation Software 15 Accumulated Amortization Service Revenue 0 Accounts Payable 0 Notes Payable short-term) Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Salaries and Wages Payable Interest Payable 0 Income Tax Payable 0 Interest Expense Common Stock 71 Supplies Expense 0 995 Retained Earnings Totals $95 Transactions and events during 2018 summand in thousands of dollars follow c a. Borrowed 512 cash on March using a short termote Purchased and on March 2 for future building and cash. 59. h es of common se April 3 for $23. 2 Puhased way I can .. Purchase s on October fortes, 518 Paid accounts payable on November 6, 513 8. Signed a $25 service contract on November to start February 1, 2019 I. Recorded revenue of 16 on December 8, including S40 credit and S120 collected in cash 2. Recognized as and wages expos December 9. Spain cash Coldwebe De Datafor m as of December Unrecorded amortization for the year on software, SS. 2. Suppliescounted on December 31, 2018. SIO 1. Depreciation for the year on the equipment 56 Interest of Store not payable & Sales and we are but not yet porced S12 Income for the year wash will be paid 2019

Answer 1

1.

Cash
Beg.	3	b.	9
a.	12	d.	10
c.	23	f.	13
h.	120	i.	85
j.	24
End.	65
Accounts Receivable
Beg.	5	j.	24
h.	40
End.	21
Supplies
Beg.	12	l.	20
e.	18
End.	10
Land
Beg.	0
b.	9
End.	9
Equipment
Beg.	60
End.	60
Accumulated Depreciation
		Beg.	6
		m.	6
		End.	12
Software
Beg.	15
d.	10
End.	25
Accumulated Amortization
		Beg.	5
		k.	5
		End.	10
Accounts Payable
f.	13	Beg.	5
		e.	18
		End.	10
Notes Payable ( short term )
		Beg.	0
		a.	12
		End.	12
Salaries and Wages Payable
		Beg.	0
		o.	12
		End.	12
Interest Payable
		Beg.	0
		n.	1
		End.	1
Income Taxes Payable
		Beg.	0
		p.	8
		End.	8
Common Stock
		Beg.	71
		c.	23
		End.	94
Retained Earnings
		Beg.	8
Service Revenue
		h.	160
			160
Salaries and Wages Expense
i.	85
o.	12
	97
Depreciation Expense
m.	6
	6
Amortization Expense
k.	5
	5
Income Tax Expense
p.	8
	8
Interest Expense
n.	1
	1
Income Tax Expense
p.	8
	8

2. & 4 :

Transaction / Event	Account Titles	Debit	Credit
		$	$
a.	Cash	12
	Notes Payable ( short term )		12
b.	Land	9
	Cash		9
c.	Cash	23
	Common Stock		23
d.	Software	10
	Cash		10
e.	Supplies	18
	Accounts Payable		18
f.	Accounts Payable	13
	Cash		13
g.	No journal entry required	0	0
h.	Cash	120
	Accounts Receivable	40
	Service Revenue		160
i.	Salaries and Wages Expense	85
	Cash		85
j.	Cash	24
	Accounts Receivable		24
Adjusting Entries
k.	Amortization Expense	5
	Accumulated Amortization		5
l.	Supplies Expense	20
	Supplies		20
m.	Depreciation Expense	6
	Accumulated Depreciation		6
n.	Interest Expense	1
	Interest Payable		1
o.	Salaries and Wages Expense	12
	Salaries and Wages Payable		12
p.	Income Tax Expense	8
	Income Taxes Payable		8