2. Record journal entries for transactions (1) through (10). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.)

3, 5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry. (Enter your answers in thousands of dollars.)

3. Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.)

4. Record the adjusting journal entries (11) through (16). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.)

5. Post the adjusting entries from requirement 4 and prepare an adjusted trial balance. (Enter your answers in thousands of dollars.)

6.a Prepare an income statement.

6.b Prepare a statement of retained earnings.

6.c Prepare balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

7. Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.)

8. Post the closing entry from requirement 7 and prepare a post-closing trial balance. (Enter your answers in thousands of dollars.)

9-a. How much net income did H & H Tool, Inc., generate during 2015? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Profit" to 2 decimal places.)

9-b. Is the company financed primarily by liabilities or stockholders equity?

9-c. What is its current ratio

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reporting period ends December 31. The trlal balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to simplify Account Titles Cash Accounts Recelvable Supplies Land Equipment Accumulated Depreclation 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 Debit Credit $ 2 6 13 0 $ 5 18 4 0 70 0 0 0 0 Totals $96 $96 Transactions during 2015 (summarized In thousands of dollars) follow 1. Borrowed $11 cash on a six-month note payable dated March 1, 2015. 2. Purchased land for future bullding slte; paid cash, $8 3. Earned revenues for 2015, S154, Including $37 on credlt and $117 collected In cash. 4. Issued additlonal shares of stock for $4 5. Recognized salarlies and wages expense for 2015, $82 pald In cash 6. Collected accounts recelvable, $21 7. Purchased software, $11 cash. 8. Pald accounts payable, $12 9. Purchased supplies on account for future use, $19. 10. Signed a $20 service contract to start February 1, 2016 Data for adjusting Journal entrles: 11. Unrecorded amortization for the year on software, $8 12. Supplies counted on December 31, 2015, $12 13. Depreclation for the year on the equipment, $5 14. Accrued Interest of $1 on notes payable 15. Salaries and wages earned but not yet pald or recorded, $11. 16. Income tax for the year was $7. It will be pald In 2016