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 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 $148 on December 8, including $34 on credit and $114 collected in cash. 1. Recognized salaries and wages expense on December 9, $79 paid in cash. Collected accounts receivable on December 10, $18. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software. $6. 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. Salaries and wages earned but not yet paid or recorded. $11 p. Income tax for the year was $7. It will be paid in 2022
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 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 $148 on December 8, including $34 on credit and $114 collected in cash. 1. Recognized salaries and wages expense on December 9, $79 paid in cash. Collected accounts receivable on December 10, $18. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software. $6. 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. Salaries and wages earned but not yet paid or recorded. $11 p. Income tax for the year was $7. It will be paid in 2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Record entry to close revenue and expense accounts to
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
$2
H Lowong
e
54
21
&0000000
$.96
Credit
56400DONG
$5
72
5.96
Transcribed Image Text: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 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 $148 on December 8, including $34 on credit and $114 collected in cash.
1. Recognized salaries and wages expense on December 9, $79 paid in cash.
Collected accounts receivable on December 10, $18.
Data for adjusting journal entries as of December 31:
k. Unrecorded amortization for the year on software. $6.
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.
Salaries and wages earned but not yet paid or recorded. $11
p. Income tax for the year was $7. It will be paid in 2022
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