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 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 Income Tax Expense Interest Expense Supplies Expense Totals Debit $3 5 12 0 69 24 0 0 0 0 0 0 0 $ 113 Credit $6 4 5 0 0 0 0 90 8 $ 113 Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $12 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $9. c. Issued additional shares of common stock on April 3 for $23. d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18. f. Paid accounts payable on November 6, $13. g. Signed a $25 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $178 on December 8, including $49 on credit and $129 collected in cash. i. Recognized salaries and wages expense on December 9, $94 paid in cash. j. Collected accounts receivable on December 10, $33. Data for adjusting journal entries as of December 31:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Record entry to close revenue and expense accounts to retained earnings. Pls put the answers in the format of the journal entry sheet. I appreciate the help
k. Unrecorded amortization for the year on software, $4.
1. Supplies counted on December 31, 2021, $10.
m. Depreciation for the year on the equipment, $6.
n. Interest of $1 to accrue on notes payable.
o. Salaries and wages earned but not yet paid or recorded, $12.
p. Income tax for the year was $8. It will be paid in 2022.
C4-2 (Algo) Part 7
Required:
7. Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Ent
account field. Enter your answers in thousands of dollars.)
View transaction list
Journal entry worksheet
1
Record entry to close revenue and expense accounts to retained earnings.
Note: Enter debits before credits.
Transaction
A
General Journal
Debit
Credit
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Transcribed Image Text:k. Unrecorded amortization for the year on software, $4. 1. Supplies counted on December 31, 2021, $10. m. Depreciation for the year on the equipment, $6. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $12. p. Income tax for the year was $8. It will be paid in 2022. C4-2 (Algo) Part 7 Required: 7. Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Ent account field. Enter your answers in thousands of dollars.) View transaction list Journal entry worksheet 1 Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transaction A General Journal Debit Credit < Prev. 6 7 8 19
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 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
Income Tax Expense
Interest Expense
Supplies Expense
Totals
Debit
$3
5
12
0
69
24
0
0
0
0
0
0
0
$ 113
Credit
$6
4
5
0
0
0
0
90
8
$113
Transactions and events during 2021 (summarized in thousands of dollars) follow:
a. Borrowed $12 cash on March 1 using a short-term note.
b. Purchased land on March 2 for future building site; paid cash, $9.
c. Issued additional shares of common stock on April 3 for $23.
d. Purchased software on July 4, $10 cash.
e. Purchased supplies on account on October 5 for future use, $18.
f. Paid accounts payable on November 6, $13.
g. Signed a $25 service contract on November 7 to start February 1, 2022.
h. Recorded revenues of $178 on December 8, including $49 on credit and $129 collected in cash.
i. Recognized salaries and wages expense on December 9, $94 paid in cash.
j. Collected accounts receivable on December 10, $33.
Data for adjusting journal entries as of December 31:
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Transcribed Image Text: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 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 Income Tax Expense Interest Expense Supplies Expense Totals Debit $3 5 12 0 69 24 0 0 0 0 0 0 0 $ 113 Credit $6 4 5 0 0 0 0 90 8 $113 Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $12 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $9. c. Issued additional shares of common stock on April 3 for $23. d. Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18. f. Paid accounts payable on November 6, $13. g. Signed a $25 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $178 on December 8, including $49 on credit and $129 collected in cash. i. Recognized salaries and wages expense on December 9, $94 paid in cash. j. Collected accounts receivable on December 10, $33. Data for adjusting journal entries as of December 31: < Prev 6 7 8 9 of 9 www H Next
Expert Solution
Explanation -

Closing Entries -

Closing entries are required to close the temporary accounts after making financials (Income statement and Balance sheet). Temporary accounts need to be closed because some items in the financial statements are temporary in nature that will not be carried forward to the next financial year.

Closing entries are required to close those accounts.

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