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): Credit Debit $ 4 4 11 0 59 $ 7 14 6 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 0 66 7 0 0 0 0 0 0 0 $92 $92

Answer 1

The adjusting entries are recorded below:
Transaction	General Journal	Debit	Credit
k.	Amortization expense	$6
	Accumulated amortization		$6
	(To record amortization expense)
l.	Supplies expense (11+17-11)	$17
	Supplies		$17
	(To record supplies expense)
m.	Depreciation expense	$7
	Accumulated depreciation		$7
n.	Interest expense	$2
	Interest payable		$2
	(To record accrued interest expense)
o.	Salaries and wages expense	$12
	Salaries and wages expense payable		$12
	(To record accrued salaries and wages)
p.	Income tax expense	$9
	Income tax payable		$9
	(To record accrued income tax)