Brothers Harry and Herman Hausyerday began operations of their machine shop (H &
ID: 2540529 • Letter: B
Question
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to simplify):
1.) Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry. What is the retained earnings T-account?
2.) Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance.
Account Titles Debit Credit Cash $ 4 Accounts Receivable 4 Supplies 11 Land 0 Equipment 53 Accumulated Depreciation $ 7 Software 20 Accumulated Amortization 7 Accounts Payable 6 Notes Payable (short-term) 0 Salaries and Wages Payable 0 Interest Payable 0 Income Tax Payable 0 Common Stock 65 Retained Earnings 7 Service Revenue 0 Salaries and Wages Expense 0 Depreciation Expense 0 Amortization Expense 0 Income Tax Expense 0 Interest Expense 0 Supplies Expense 0 Totals $ 92 $ 92Explanation / Answer
Answer 1 & 2. Cash Accounts Receivable Supplies Beg. Bal. 4.00 7.00 2 Beg. Bal. 4.00 17.00 6 Beg. Bal. 11.00 17.00 12 1 13.00 78.00 5 3 33.00 9 17.00 3 113.00 12.00 7 4 2.00 14.00 8 6 17.00 End. Bal. 38.00 End. Bal. 20.00 End. Bal. 11.00 Land Equipment Accumulated Depreciation Beg. Bal. - Beg. Bal. 53.00 Beg. Bal. 7.00 2 7.00 7.00 13 End. Bal. 7.00 End. Bal. 53.00 End. Bal. 14.00 Software Accumulated Amortization Accounts Payable Beg. Bal. 20.00 Beg. Bal. 7.00 Beg. Bal. 6.00 7 12.00 7.00 11 8 14.00 17.00 9 End. Bal. 32.00 End. Bal. 14.00 End. Bal. 9.00 Notes Payable (Short Term) Salaries & Wages Payable Interest Payable Beg. Bal. - Beg. Bal. - Beg. Bal. - 13.00 1 13.00 15 2.00 14 End. Bal. 13.00 End. Bal. 13.00 End. Bal. 2.00 Income Tax Payable Common Stock Retained Earnings Beg. Bal. - Beg. Bal. 65.00 Beg. Bal. 7.00 9.00 16 2.00 4 13.00 19 End. Bal. 9.00 End. Bal. 67.00 End. Bal. 20.00 Service Revenue Salaries & Wages Expense Depreciation Expense Beg. Bal. - Beg. Bal. - 91.00 17 Beg. Bal. - 7.00 17 18 146.00 146.00 3 5 78.00 13 7.00 15 13.00 End. Bal. - End. Bal. - End. Bal. - Amortization Expense Income Tax Expense Interest Expense Beg. Bal. - 7.00 17 Beg. Bal. - 9.00 17 Beg. Bal. - 2.00 17 11 7.00 16 9.00 14 2.00 End. Bal. - End. Bal. - End. Bal. - Supplies Expense Beg. Bal. - 17.00 17 12 17.00 End. Bal. - Answer 2. H & H Tools Inc Unajusted Trial Balance For the Year Ended Dec 31-2015 Accounts Title Debits Credits Cash 38.00 Accounts Receivable 20.00 Supplies 28.00 Land 7.00 Equipment 53.00 Accumulated Depreciation 7.00 Software 32.00 Accumulated Amortization 7.00 Accounts Payable 9.00 Notes Payable (Short Term) 13.00 Salaries & Wages Payable - Interest Payable - Income Tax Payable - Common Stock 67.00 Retained Earnings 7.00 Service Revenue 146.00 Salaries & Wages Expense 78.00 Depreciation Expense - Amortization Expense - Income Tax Expense - Interest Expense - Supplies Expense - Total 256.00 256.00 Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Cash 13.00 Notes Payable - Short Term 13.00 2 Land 7.00 Cash 7.00 3 Accounts Receivable 33.00 Cash 113.00 Service Revenue 146.00 4 Cash 2.00 Common Stock 2.00 5 Salaries & Wages Expense 78.00 Cash 78.00 6 Cash 17.00 Accounts Payable 17.00 7 Software 12.00 Cash 12.00 8 Accounts Payable 14.00 Cash 14.00 9 Supplies 17.00 Accounts Payable 17.00 10 No Entry Adjusting Entry 11 Amortization Expense 7.00 Accumulated Amortization 7.00 12 Supplies Expense 17.00 Supplies 17.00 13 Depreciation Expense 7.00 Accumulated Depreciation 7.00 14 Interest Expense 2.00 Interest Payable 2.00 15 Salaries & Wages Expense 13.00 Salaries & Wages Payable 13.00 16 Income Tax Expense 9.00 Income Tax Payable 9.00 Closing Entry 17 Income Summary 133.00 Salaries & Wages Expense 91.00 Depreciation Expense 7.00 Amortization Expense 7.00 Income Tax Expense 9.00 Interest Expense 2.00 Supplies Expense 17.00 18 Service Revenue 146.00 Income Summary 146.00 19 Income Summary 13.00 Retained Earnings 13.00
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