Question

Required information 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): Debit Credit $ 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 66 0 0 0 0 0 0 0 $92 $92

Answer 1

Sl.no Journals: Date Account title 1 Mar.1 Cash Notes Payable (Short-term) Debit Credit $ 13 $ 13 $ 7 2 Mar.2 Land Cash $ 7 $ 25 3. Apr.3 Cash Common Stock $ 25 $ 12 4 Jul.4 Software Cash $ 12 $ 17 5 Oct.5 Supplies Accounts Payable $ 17 $ 14 6 Nov.6 Acccounts Payable Cash $ 14 7 Nov.7 No Entry 8. Dec. 8 Cash Accounts Receivable Service Revenue $ 119 $ 39 $ 158 $ 84 9 Dec. 9 Salaries ans Wages Expense Cash $ 84 $ 23 10 Dec. 10 Cash Accounts Receivable $ 23

Adjusting Entries: 11 Dec.31 Amortization Expense Accumulated Amortization $ 6 $ 6 12 Dec.31 Supplies Expense ($11+17-11] $ 17 Supplies $ 17 $ 7 13 Dec.31 Depreciation Expense Accumulated Depreciation $ 7 $ 2 14 Dec.31 Interest Expense Interest Payable $ 2 2 $ 12 15 Dec.31 Salaries and Wages Expense Salaries and Wages Payable $ 12 $ $ 9 16 Dec.31 Income Tax Expense Income Tax Payable $ 9

Account Particulars Unadjusted T/B Debit Credit 4 4 11 Adjustments Debit Credit 63 16 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Adjusted T/B Debit Credit 67 20 11 7 59 7 59 $ 7 $ 7 $ 14 $ 14 $ 12 $ 26 6 6 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 Expenses Amortization Expense Income Tax Expense Interest Expense Supplies Expense TOTAL $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 6 3 13 12 2 9 25 $ $ $ $ $ $ $ $ $ 12 9 13 12 2 9 91 7 66 7 158 96 96 7 6 $ $ $ $ $ $ $ $ $ 9 $ $ $ $ $ $ 92 $ $ 158 $ $ $ $ $ $ 235$ $ 7 6 9 2 17 327$ 2 17 235$ 92 $ 327 63 16 Adjustments: *Cash= $13-7+25-12-14+119-84+23 *A/R= $39-23 * Supplies= $17 - $17 *A/P= $17-14 *Salaries = $84+12 $ $ $ $ $ 3 96

H&H Tool Inc. Income Statement For the Year Ended December 31,2018 (in thousands) Revenue Service Revenue $ 158 H&H Tool Inc. Statement of Retained Earnings For the Year Ended December 31,2018 in thousands) Balance, January 1 $ 7 Add: Net Income $ 21 Less: Dividends $ Retained Earnings, Dec,31, $ 28 Assets 9 $ 158 Current Assets: Cash Accounts Receivable Supplies Total Revenue Expenses: Salaries and Wages Expense Depreciation Expenses Amortization Expense Income Tax Expense Interest Expense Supplies Expense 13 12 2 9 45 $ $ $ $ $ $ H&H Tool Inc. Balance sheet At Dec 31, 2018 (in thousands) Liabilities Current Liabilities: $ 67 Accounts payable $ $ 20 Notes Payable (Short-term) $ $ 11 Salaries and wages Payable $ Interest Payable $ Income Tax Payable $ $ 98 Total Liabilities $ Shareholder's Equity $ 7 Common Stock $ 59 Retained Earnings $ -14 $ 45 26 -12 $ 14 $ 66 Total Stockholders Equity $ $ 164 Total Liabilities and Stockholders Equity $ 96 7 6 9 2 17 91 28 Total Current Assets Long-term Assets: Land Equipment $ Accumulated Depreciation $ Software $ Accumulated Amortization $ Total Long-term Asset Total Assets 137 Total Expenses Net Income S $ 21 119 164

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