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: Debit credit Account Titles Cash Accounts Receivable Supplies Land Equipent Accumulated Depreciation Software Accumulated amortization. accounts Payable Notes Payable (short-ter) Salaries and was Payable Interest Payable Income Tax Payable Connon stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense

Answer 1

Credit $ 7 26 6 ANSWER: H & H TOOL, INC. Unadjusted Trial Balances (in thousands) Account Titles Debit Cash $ Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software $ Accumulated Amortisation 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 $ Supplies expense Depreciation expense Interest expense Income tax expense 7 158 84 Total $ 291 $ 291

Working note: Journal entries for transactions and events during 2018. Transactions Debit Credit 13 Account titles and explanations Cash Notes Payable (short-term) (to record borrowed cash) 13 b. Land Cash (to record purchase of land) 25 Cash Common stock (to record issue of additional common stock) d. 12 Software Cash (to record purchase of software) 17 Supplies Accounts Payable (Purchase of supplies on account) 14 Accounts Payable Cash (Payment of accounts payable) 14 No entry required 119 39 Cash Accounts Receivable Service Revenue (to record service revenue) 158 84 Salaries and wages expense Cash (to record salaries and wages expense) 23 Cash Accounts Receivable (To record collection of accounts receivable)