Question

Balance sheet needed

Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals OOOOO $92 $92 Transactions and events during 2018 (summarized in thousands of dollars) follow: 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. f. Paid accounts payable on November 6, $14. g. Signed a $30 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $158 on December 8, including $39 on credit and $119 collected in cash. i. Recognized salaries and wages expense on December 9, $84 paid in cash. j. Collected accounts receivable on December 10, $23. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $6. 1. Supplies counted on December 31, 2018, $11. m. Depreciation for the year on the equipment, $7. n. Interest of $2 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $12. p. Income tax for the year was $9. It will be paid in 2019. C4-2 Part 6 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet.

Answer 1

H & H Tool, Inc. (Amount in '000) Journal Enteries Date Particulars 1.3.2016 Cash a/c Dr. To Note Payable (Being Note Payable issued) Debit in $Credit in $ 13 13 2.3.2016 7 Land a/c Dr. To Cash (Being Land purchased in cash) 7 119 39 8.12.2016 Cash a/c Dr. Accounts Receivable a/c Dr. To service revenue (Being Revenue earned in cash and credit) 158 3.4.2016 25 Cash a/c Dr. To Common Stock (Being Common Stock issued for cash) 25 84 9.12.2016 Salaries and wages expense a/c Dr. To Cash (Being salaries and wages paid in cash) 84 23 10.12.2016 Cash a/c Dr. To Accounts Receivable (Being Cash received from debtors) 23 4.7.2016 12 Software a/c Dr. To Cash (Being Software purchased for cash) 12 14 6.11.2016 Accounts Payable a/c Dr. To Cash (Being Accounts Payable paid in cash) 14 17 5.10.2016 Supplies a/c Dr. To Accounts Payable (Being Supplies purchased on account) 17

Adjusting Enteries Date Particulars Debit in $Credit in $ 31.12.2016 Amortization on software a/c Dr. 6 To accumulated amortization (Being amortization of software charged to Software) 6 Dr. 17 31.12.2016 Supplies Expense a/c To Supplies (Being Supplies expense charged to Supplies) 17 31.12.2016 Depreciation a/c Dr. 7 To accumulated depreciation (Being Depreciation on equipment charged to Equip.) 7 2 31.12.2016 Interest Expense a/c Dr. To Interest Payable (Being Interest accrued on Note Payable) 2 12 31.12.2016 Salaries and wages expense a/c Dr. To Salaries and wages payable (Being Salary Expense accrued) 12 Dr. 9 31.12.2016 Income tax expense a/c To Income Tax Payable (Being Income tax accrued) 9 Closing Enteries Date Particulars Debit in $ Credit in $ 31.12.2013 Income Summary a/c Dr. 137 To Salaries and wages expense 96 To Depreciation Expense 7 To Amortization Expense To Income tax expense To Interest Expense 2 To Supplies Expense 17 (Being expense accounts closed 6 9 158 31.12.2013 Service Revenue a/c Dr. To Income Summary Being Revenue accounts closed 158 21 31.12.2013 Income Summary a/c Dr. To Retained Earnings (Being Income summary closed) 21

Adjusted Trial Balance For the period ending 31.12.2016 Unadjusted Adjustment Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 67 67 20 20 17 67 20 28 11 11 7 7 7 59 59 59 7 7 14 14 26 26 26 6 6 12 12 9 9 9 13 13 13 12 12 12 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 Earning Service revenue Salaries and wages expense Depreciation Expense Amortization Expense Income tax expense Interest Expense Supplies Expense Totals 2 2 2 9 9 9 91 91 91 7 7 28 158 158 84 12 96 7 7 6 6 9 9 2 N 17 17 291 291 53 53 327 327 190 190 0

158 Amounts in $ Amounts in $ 96 Statement of Income For the period ending 31.12.2016 Service revenue Less: Salaries and wages expense Depreciation Expense Amortization Expense Income tax expense Interest Expense Supplies Expense Net Income 9 13 7 6 Balance sheet As at 31.12.2016 Assets Amounts in $ Amounts in $ Liabilities Current Assets Current Liabilities Cash 67 Accounts Payable Accounts Receivable 20 Notes Payable (short term) Supplies 11 98 Salaries and wages payable Interest Payable Non Current Assets Income Tax Payable land 7 Equipment 59 Shareholders equity Accumulated deprecia -14 45 Common Stock Software 26 Retained Earning Accumulated Amortiza -12 14 Total Assets 164 Total Liabilities & equity 9 12 2 2 9 45 17 137 21 91 28 119 Statement of Retained Earnings For the period ending 31.12.2016 1.1.2016 7 164 Net Income 21 28 be