Brothers Harry and Herman Haunyerday began operations of their machine 1 2013. T

Question

Brothers Harry and Herman Haunyerday began operations of their machine 1 2013. The annusi reporting perlod ends December 31. The trial balance on January 1, 2015, follows shop pH& H Tool, inc.) on the amounts are rounded to thousands of dollars to slmplity 70 15 Accumulated Amortization 5 Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable income Tax Payable Common Stock Retained Earnings Service Revenue Salarles and Wages Expense Depreclation Expense Amortization Expense o Income Tax Expense 0 Interest Expense Supplies Expense 0 Totals $106 $106 Transactions during 2015 (summarlzed in thousands of dollars) follow 1. Borrowed $11 cash on a six-month note payable dated March 1, 2015. 2. Purchased land for future building site; paid cash, $8. 3. Earned revenues for 2015, $180, Including $50 on credit and $130 collected in cash. 4. Issued additional shares of stock for $4 5. Recognized salaries and wages expense for 2015, $95 paid in cash. 6. Collected accounts receivable, $34. Purchased software, $11 cash 8. Paid accounts payable, $12 9. Purchased supplies on account for future use, $19. 0.Signed a $20 service contract to start February 1, 2016

Explanation / Answer

9-b. The company is mainly financed by stockholders' equity

9-c.

Cash Accounts Receivable Ref Debit Credit Ref Ref Debit Credit Ref Beg.Bal. 2 8 2 Beg.Bal. 6 34 6 1 11 95 5 3 50 3 130 11 7 4 4 12 8 56 34 6 34 Beg.Bal. 22 181 126 Beg.Bal. 55 Supplies Land Ref Debit Credit Ref Ref Debit Credit Ref Beg.Bal. 13 Beg.Bal. 0 9 19 2 8 32 0 8 0 Beg.Bal. 32 Beg.Bal. 8 Acumulated Depreciation Equipment Ref Debit Credit Ref Ref Debit Credit Ref Beg.Bal. 5 Beg.Bal. 70 70 0 0 5 Beg.Bal. 70 5 Beg.Bal. Software Ref Debit Credit Ref Acumulated Amortization Beg.Bal. 15 Ref Debit Credit Ref 7 11 Beg.Bal. 5 26 0 5 Beg.Bal. 26 5 Beg.Bal. Accounts Payable Notes Payable (Short Term) Ref Debit Credit Ref Ref Debit Credit Ref Beg.Bal. 4 11 1 8 12 19 9 0 11 12 23 11 Beg.Bal. 11 Beg.Bal. Interest payable Salaries and wages payable Ref Debit Credit Ref Ref Debit Credit Ref 0 0 0 Beg.Bal. 0 Beg.Bal. Income Tax Payable Common Stock Ref Debit Credit Ref Ref Debit Credit Ref Beg.Bal. 83 4 4 0 0 0 87 0 Beg.Bal. 87 Beg.Bal. Retained Earnings Service Revenue Ref Debit Credit Ref Ref Debit Credit Ref Beg.Bal. 9 180 3 0 9 0 180 9 Beg.Bal. 180 Beg.Bal. Salaries and wages Expense Depreciation expense Ref Debit Credit Ref Ref Debit Credit Ref 5 95 95 0 Beg.Bal. 95 Amortization Expense Income Tax expense Ref Debit Credit Ref Ref Debit Credit Ref Interest Expense supplies Expense Ref Debit Credit Ref Ref Debit Credit Ref

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