Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 2020. The annual reporting perlod 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 Debit $ 2 6 13 Credit Supplies Land Equipment Accunulated Depreciation Software 54 21 Accunulated Amortization Accounts Payable Notes Payable (short-tern) Salaries and Wages Payable Interest Payable Income Tax Payable Connon Stock Retained tarnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Exреnse Interest Expense Supplies Expense Tot als
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 2020. The annual reporting perlod 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 Debit $ 2 6 13 Credit Supplies Land Equipment Accunulated Depreciation Software 54 21 Accunulated Amortization Accounts Payable Notes Payable (short-tern) Salaries and Wages Payable Interest Payable Income Tax Payable Connon Stock Retained tarnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Exреnse Interest Expense Supplies Expense Tot als
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
salaries and wages expense
supplies expense
amoization expense
interest expense
income tax expense
Total

Transcribed Image Text:Brothers Harry and Herman Hausyerday began operatlons of their machine shop (H & H Tool, Incorporated) on January 1.
2020. The annual reporting perlod 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
Debit Credit
$ 2
6
Supplies
Land
13
Equipment
Accumulated Depreciation
Sof tware
54
$5
21
Accumulated Amortization
6
Accounts Payable
Notes Payable (short-tern)
Salaries and Wages Payable
Interest Payable
Income Tax Payable
Connon Stock
Retained Earnings
Service Revenue
Salaries and Wages Expense
Depreciation Expense
Amortization Expense
Income Tax Expense
Interest Expense
Supplies Expense
4
72
Totals
$ 96
$ 96
Transactions 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 bullding site: pald 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 Pald accounts payable on November 6. $12.
g. Signed a $20 service contract on November 7 to start February 1, 2022.
h. Recorded revenues of $148 on December 8. Including $34 on credit and $114 collected in cash.
1. Recognized salarles and wages expense on December 9, $79 pald In cash.
J. Collected accounts recelvable on December 10, $18.
Data for adjustling Journal entries as of December 31:
k. Unrecorded amortization for the year on software, $6.
1. 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. Salarles and wages earned but not yet pald or recorded, $1.
p. Income tax for the year was $7. It will be pald In 2022
Required:
5. Prepare an adjusted trial balance. (Enter your answers in thousands of dollars.)
H&H TOOL, INCORPORATED
Adjusted Trial Balance
(in thousands)
Account Titles
Debit
Credit
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
IService Revenue
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H AND H TOOLS INC DECEMBER 2021
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