80.2K

Verified Solution

Link Copied!

Brothers Harry and Herman Hausyerday began operations of their machine shop ( H&HTool, 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): 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 bullding 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. CPaid accounts payable on November 6,$13. g. Signed a $25 service contract on November 7 to start February 1, 2022. 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 $160 on December 8 , including $40 on credit and $120 collected in cash. i. Recognized salaries and wages expense on December 9,$85 paid in cash. j. Collected accounts receivable on December 10,$24. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $5. i. 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. 0 . 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 . Record the necessary closing entry. Combine the closing of revenue and expenses into one entry. Note: Enter debits before credits. Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. Brothers Harry and Herman Hausyerday began operations of their machine shop ( H&HTool, 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): 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 bullding 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. CPaid accounts payable on November 6,$13. g. Signed a $25 service contract on November 7 to start February 1, 2022. 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 $160 on December 8 , including $40 on credit and $120 collected in cash. i. Recognized salaries and wages expense on December 9,$85 paid in cash. j. Collected accounts receivable on December 10,$24. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $5. i. 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. 0 . 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 . Record the necessary closing entry. Combine the closing of revenue and expenses into one entry. Note: Enter debits before credits. Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance

Answer & Explanation Solved by verified expert

See Answer