Question

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): Credit Debit $ 4 11 0 59 $ 7 14 0 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 66 7 0 0 0 0 0 0 $92 $92

Answer 1

The unadjusted trial balance before adjusting entries is given below:
Unadjusted trial balance
In thousands
Account title	Debit	Credit
Cash	$67		4+13-7+25-12-14+119-84+23
Accounts receivable	$20		4+39-23
Supplies	$28		11+17
Land	$7
Equipment	$59
Accumulated depreciation		$7
Software	$26
Accumulated amortization		$6
Accounts payable		$9	6+17-14
Notes payable (short term)		$13
Salaries and wages payable		$0
Interest payable		$0
Income taxes payable		$0
Common stock		$91	66+25
Retained earnings		$7
Service revenue		$158
Salaries and wages expense	$84
Supplies expense
Depreciation expense
Interest expense
Income tax expense
Totals	$291	$291