Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 1,2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (the amounts arerounded to thousands of dollars to simplify):Account TitlesCashAccounts ReceivableSuppliesLandEquipmentAccumulated DepreciationSoftwareAccumulated AmortizationAccounts PayableNotes Payable (short-term)Salaries and Wages PayableInterest PayableIncome Tax PayableCommon StockRetained EarningsService RevenueSalaries and Wages ExpenseDepreciation ExpenseAmortization ExpenseIncome Tax ExpenseInterest ExpenseSupplies ExpenseTotalsDebit Credit$2263051367210000000$ 109$ 540849$ 109Transactions and events during 2021 (summarized in thousands of dollars) follow:a. Borrowed $11 cash on March 1 using a short-term note.b. Purchased land on March 2 for future building site; paid cash, $8.c. Issued additional shares of common stock on April 3 for $30.d. Purchased software on July 4, $11 cash.e. Purchased supplies on account on October 5 for future use, $19.f. Paid accounts payable on November 6, $12.g. Signed a $20 service contract on November 7 to start February 1, 2022.h. Recorded revenues of $174 on December 8, including $47 on credit and $127 collected in cash.i. Recognized salaries and wages expense on December 9, $92 paid in cash.j. Collected accounts receivable on December 10, $31.Data for adjusting journal entries as of December 31:k. Unrecorded amortization for the year on software, $7./. Supplies counted on December 31, 2021, $12.m. Depreciation for the year on the equipment, $5.n. Interest of $1 to accrue on notes payable.o. Salaries and wages earned but not yet paid or recorded, $13.p. Income tax for the year was $7. It will be paid in 2022. 7. Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the firstaccount field. Enter your answers in thousands of dollars.)View transaction listJournal entry worksheet1Record entry to close revenue and expense accounts to retained earnings.Note: Enter debits before credits.TransactionARecord entryGeneral JournalClear entryDebitCreditView general journal>

Closing journal entries are those entries which are recorded at the end of the accounting year and…

2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (the amounts are rounded to thousands of dollars to simplify): 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 Debit Credit $2 6 13 67 21 0 0 0 0 $5 7 4 0 0 84 9

2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (the amounts are rounded to thousands of dollars to simplify): 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 Debit Credit $2 6 13 67 21 0 0 0 0 $5 7 4 0 0 84 9

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...

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