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): decount Titles ge nerated amortization ESS- 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 VESTI 392 392 EES Transactions and events during 2018 (summarized in thousands of a Borrowed $13 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site: paid cash, $7. c Issued additional shares of common stock on April 3 for $25. d. Purchased Software on July 4. $12 cash e Purchased supplies on account on October 5 for future use. $17. Pald accounts payable on November 6. $14. g Signed a $30 service contract on November 7 to start February 1, 2019 . Recorded revenues of $158 on December 8, including $39 on credit and $119 colected in cash Recognized Salaries and wages expense on December 9. 584 paldin cash Collected accounts receivable on December 10.$23. Data for adjusting Journal entries as of December 31:

Answer 1

H&H TOOL INC
Adjusted trail balance
At December 31,2018
(In thousands)
Accounts title	Total Debit	Total Credit
Cash	67
Accounts receivable	20
Supplies	11
Land	7
Equipment	59
Accumulated depreciation		14
Software	26
Accumulated amoritzation		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		7
Service revenue		158
Salaries and wages expense	96
Supplies expense	17
Depreciation expense	7
Amortization expense	6
Interest expense	2
Income tax expense	9
Total	327	327

Accounts title	Debit	Credit	Mar.01	Mar.02	Apr.03	Jul.04	Oct.05	Nov.06	Dec.08	Dec.09	Dec.10	Dec.31	Total Debit	Total Credit
Cash	4		13	-7	25	-12		-14	119	-84	23		67
Accounts receivable	4								39		-23		20
Supplies	11						17					-17	11
Land	0			7									7
Equipment	59												59
Accumulated depreciation		7										7		14
Software	14					12							26
Accumulated amoritzation		6										6		12
Accounts payable		6					17	-14						9
Notes payable (short term)		0	13											13
Salaries and wages payable		0										12		12
Interest payable		0										2		2
Income tax payable		0										9		9
Common stock		66			25									91
Retained earnings		7												7
Service revenue	0								158					158
Salaries and wages expense	0									84		12	96
Supplies expense	0											17	17
Depreciation expense	0											7	7
Amortization expense	0											6	6
Interest expense	0											2	2
Income tax expense	0											9	9
Total	92	92											327	327

Note:

Since transaction on Nov.07 is only signed, no money received it will not impact financial position. Hence ignored.

Since closing supplies is 11, 17 is taken for consumption.