Question

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Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify):

Account Titles	Debit			Credit
Cash	$	2
Accounts Receivable		6
Supplies		13
Land		0
Equipment		57
Accumulated Depreciation				$	5
Software		18
Accumulated Amortization					8
Accounts Payable					4
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					70
Retained Earnings					9
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	$	96		$	96

Transactions and events during 2018 (summarized in thousands of dollars) follow:

Borrowed $11 cash on March 1 using a short-term note.

Purchased land on March 2 for future building site; paid cash, $8.

Issued additional shares of common stock on April 3 for $27.

Purchased software on July 4, $11 cash.

Purchased supplies on account on October 5 for future use, $19.

Paid accounts payable on November 6, $12.

Signed a $20 service contract on November 7 to start February 1, 2019.

Recorded revenues of $154 on December 8, including $37 on credit and $117 collected in cash.

Recognized salaries and wages expense on December 9, $82 paid in cash.

Collected accounts receivable on December 10, $21.

Data for adjusting journal entries as of December 31:

Unrecorded amortization for the year on software, $8.

Supplies counted on December 31, 2018, $12.

Depreciation for the year on the equipment, $5.

Interest of $1 to accrue on notes payable.

Salaries and wages earned but not yet paid or recorded, $11.

Income tax for the year was $7. It will be paid in 2019.

Record journal entries for transactions (a) through (j).

Answer 1

Journal entry

Date	account and explanation	debit	credit
March 1	Cash	11
	Notes Payable (short-term)		11
	(To record borrow)
March 2	Land	8
	Cash		8
	(To record purchase land)
Apr 3	Cash	27
	Common Stock		27
	(To record issue common Stock)
July 4	Software	11
	Cash		11
	(To record purchase software)
Oct 5	Supplies	19
	Account payable		19
	(To record purchase supplies)
Nov 6	Account payable	12
	Cash		12
	(To record amount paid)
	No entry
Dec 8	Cash	117
	Account receivable	37
	Sales revenue		154
	(To record sales)
Dec 9	Salaries and wages	82
	Cash		82
	(To record salaries and wages)
Dec 10	Cash	21
	Account receivable		21
	(To record collect cash)