Question

Required information C4-2 From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3, and 4) (LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, LO 4-5, LO 4-6) [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): Debit Credit 11 0 59 $ 7 14 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 6 6 0 0 0 0 66 7 0 0 0 0 0 0 0 $92 $92

Answer 1

Closing Entries
Events	Particulars			Debit	Credit
1)	Service Revenue			$ 158.00
	To Retained Earnings				$ 158.00
2)	Retained Earnings			$ 137.00
	To Salaries and Wages Expense				$   96.00
	To Supplies Expense				$   17.00
	To Depreciation Expense				$      7.00
	To Interest Expense				$      2.00
	To Income Tax Expense				$      9.00
	To Amortization Expense				$      6.00
Alternatively
1)	Service Revenue			$ 158.00
	To Income Summary				$ 158.00
2)	Income Summary			$ 137.00
	To Salaries and Wages Expense				$   96.00
	To Supplies Expense				$   17.00
	To Depreciation Expense				$      7.00
	To Interest Expense				$      2.00
	To Income Tax Expense				$      9.00
	To Amortization Expense				$      6.00
3)	Income Summary			$   21.00
	To Retained Earnings				$   21.00

Workings:

			Unadjusted		Adjustments		Adjusted
			Debit	Credit	Debit	Credit	Debit	Credit
Cash			$   67.00				$   67.00
Accounts Receivable			$   20.00				$   20.00
Supplies			$   28.00			$   17.00	$   11.00
Land			$      7.00				$      7.00
Equipment			$   59.00				$   59.00
Accumulated Depreciation				$      7.00		$      7.00		$   14.00
Software			$   26.00				$   26.00
Accumulated Amortization				$      6.00		$      6.00		$   12.00
Accounts Payable				$      9.00				$      9.00
Notes Payable (short-term)				$   13.00				$   13.00
Salaries and Wages Payable				$          -		$   12.00		$   12.00
Interest Payable				$          -		$      2.00		$      2.00
Income Taxes Payable				$          -		$      9.00		$      9.00
Common Stock				$   91.00				$   91.00
Retained Earnings				$      7.00				$      7.00
Service Revenue				$ 158.00				$ 158.00
Salaries and Wages Expense			$   84.00		$   12.00		$   96.00
Supplies Expense			$          -		$   17.00		$   17.00
Depreciation Expense			$          -		$      7.00		$      7.00
Interest Expense			$          -		$      2.00		$      2.00
Income Tax Expense			$          -		$      9.00		$      9.00
Amortization Expense			$          -		$      6.00		$      6.00
Totals			$ 291.00	$ 291.00	$   53.00	$   53.00	$ 327.00	$ 327.00