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): Credit Debit $ 2 6 13 70 s 5 15 5 4 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 83 9 @ @ @ $126 $186 Transactions and events during 2018 (summarized in thousands of dollars) follow: a. Borrowed $11 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site: paid cash. $8. c. Issued additional shares of common stock on April 3 for $24. d. Purchased software on July 4, $11 cash. e. Purchased supplies on account on October 5 for future use. $19. f. Paid accounts payable on November 6. $12. 9. Signed a $20 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $180 on December 8, including $50 on credit and $130 collected in cash. i. Recognized salaries and wages expense on December 9. $95 paid in cash. j. Collected accounts receivable on December 10, $34. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software. $5. 1. Supplies counted on December 31, 2018. $12. m. Depreciation for the year on the equipment. $5. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $13. p. Income tax for the year was $7. It will be paid in 2019.
Question in images

Answer 1

5.

H & H TOOLS, INC.
Adjusted Trial Balance
Fro the year ended December 31,2018
(in thousands)
Account Tiitles	Debit	Credit
Cash	$75
Accounts Receivable	$22
Supplies	$12
Land	$8
Equipment	$70
Accumulated depreciation		$10
Software	$26
Accumulated Amortization		$10
Accounts Payable		11
Notes Payable(short-term)		$11
Salaries and Wages Payable		$13
Interest Payable		$1
Income Tax Payable		$7
Common Stock		$107
Retained Earnings		$9
Service Revenue		$180
Salaries and Wages Expenses	$108
Supplies Expenses	$20
Depreciation Expenses	$5
Amortization Expenses	$5
Interest Expense	$1
Income Tax Expense	$7
Total	$359	$359

Calculations;

Account Tiitles	Debit	Credit
Cash	2+11-8+24-11-12+130-95+34
Accounts Receivable	6+50-34
Supplies	13+19-20
Land	0+8
Equipment	$70
Accumulated depreciation		5+5
Software	15+11
Accumulated Amortization		5+5
Accounts Payable		4+19-12
Notes Payable(short-term)		0+11
Salaries and Wages Payable		0+13
Interest Payable		0+1
Income Tax Payable		0+7
Common Stock		83+24
Retained Earnings		$9
Service Revenue		0+180
Salaries and Wages Expenses	0+95+13
Supplies Expenses	0+20
Depreciation Expenses	0+5
Amortization Expenses	0+5
Interest Expense	0+1
Income Tax Expense	0+7