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 6 6 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 OOOOOO 0 0 0 0 0 0 0 $92 $92

Answer 1

2 Post-Closing Trail Balance Account Particulars 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 Total Debit Credit $ 67 $ 20 $ 11 $ 7 $ 59 $ 14 $ 26 $ 12 $ 9 $ 13 $ 12 $ 2 $ 9 $ 91 $ 28 $ 190 $ 190 H&H TOOL, INC. Post-Closing Trail Balance Dec, 31,2018 Account Particulars Debit Credit Cash $ 67 Accounts Receivable $ 20 Supplies $ 11 Land $ 7 Equipment $ 59 Accumulated Depreciation $ 14 Software $ 26 Accumulated Amortization $ 12 Accounts payable $ 9 Notes Payable (Short-term) $ 13 Salaries and wages Payable $ 12 Interest Payable $ 2 Income Tax Payable $ 9 Common Stock $ 91 Retained Earnings $ 28 Dividends $ Service Revenue $ Salaries and Wages Expense $ Depreciation Expenses $ Amortization Expense $ Income Tax Expense $ Interest Expense $ Supplies Expense S Total $ 190 $ 190 *Retained Earnings Beginning R.E+Net Income *Retained Earnings $7+$21 *Retained Earnings $28

Workings:

Credit Sl.no 1 Date Mar.1 Journals: Account title Cash Notes Payable (Short-term) Debit $ 13 1 $ 13 2 Mar.2 $ 7 Land Cash $ 7 3 Apr.3 Cash $ 25 Common Stock $ 25 4 Jul.4 $ 12 Software Cash $ 12 5 Oct.5 $ 17 Supplies Accounts Payable $ 17 6 Nov.6 $ 14 Acccounts Payable Cash $ 14 7 Nov.7 No Entry 8 Dec. 8 Cash $ $ 119 39 Accounts Receivable Service Revenue $ 158 9 Dec. 9 $ 84 Salaries ans Wages Expense Cash $ 84 $ 23 10 Dec. 10 Cash Accounts Receivable $ 23

Adjusting Entries: 11 Dec.31 Amortization Expense Accumulated Amortization $ 6 $ 6 $ 17 12 Dec.31 Supplies Expense [$11+17-11] Supplies $ 17 $ FA 7 13 Dec.31 Depreciation Expense Accumulated Depreciation $ 7 $ 2 14 Dec.31 Interest Expense Interest Payable $ 2 $ 12 15 Dec.31 Salaries and Wages Expense Salaries and Wages Payable $ 12 $ 9 16 Dec.31 Income Tax Expense Income Tax Payable $ 9

Account Particulars Unadjusted T/B Debit Credit 4 Adjustments Debit Credit 63 16 Adjusted T/B Debit Credit 67 20 $ $ $ 4 11 $ $ $ $ $ $ $ $ $ $ 11 7 $ $ 7 59 59 $ 7 $ 7 $ 14 $ 14 $ 12 $ 26 6 6 12 6 3 9 13 12 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 Expenses Amortization Expense Income Tax Expense Interest Expense Supplies Expense TOTAL $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 13 12 2 9 91 7 158 25 66 7 158 96 96 7 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 92 $ $ 7 6 9 $ $ $ $ $ 6 9 2 17 235$ 2 17 92 $ 327$ 327 235$ $ 63 16 Adjustments: *Cash= $13-7+25-12-14+119-84+23 *A/R= $39-23 *Supplies= $17 - $17 *A/P= $17-14 *Salaries = $84+12 $ $ $ $ $ 3 96

SI. Credit Credit Closing Entries Closing Entries Particulars Service Revenue Income Summary (To close the revenue account to income summary) Debit $ 158 1 Debit $ $ $ $ $ $ 158 67 20 11 7 59 2 $ 137 $ 14 $ $ 26 96 7 Post-Closing Trail Balance Account Particulars 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 Total S 12 S 6 Income Summary Salaries and Wages Expense Depreciation Expenses Amortization Expense Income Tax Expense Interest Expense Supplies Expense (To close the expense account to income summary) 9 9 $ $ S $ $ $ $ $ $ 13 12 2 17 2 9 91 3 $ 21 $ $ 190 $ Income Summary Retained Earnings (To close Income statement to retained earnings ) 28 $ 21 $ 190 *Retained Earnings Beginning R.E+Net Income *Retained Earnings= $7+$21 *Retained Earnings $28

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