21 [The following information applies to the questions displayed below.) 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): Part 9 of 12 Credit Debit $ 2 6 0.25 points 13 0 54 03:09:41 $ 5 21 6 4 eBook References 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 0 72 9 0 0 0 0 $96 $96 Transactions and events during 2018 (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. 21 Il dl 15dCLIOTIS dllu Events Juny 2010 (Sunnudlizeu ll LIIDUSIUS OI UOldI) TONOW. Part 9 of 12 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, 2019. h. Recorded revenues of $148 on December 8, including $34 on credit and $114 collected in cash. i. Recognized salaries and wages expense on December 9, $79 paid in cash. j. Collected accounts receivable on December 10, $18. 0.25 points 03:09:08 Data for adjusting journal entries as of December 31: eBook References k. Unrecorded amortization for the year on software, $6. 1. Supplies counted on December 31, 2018, $12. m. Depreciation for the year on the equipment, $5. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $11. p. Income tax for the year was $7. It will be paid in 2019. 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet. Complete this question by entering your answers in the tabs below. 21 Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C Part 9 of 12 Prepare an income statement. (Enter your answers in thousands of dollars.) 0.25 points H&H TOOL, INC. Income Statement For the Year Ended December 31, 2018 (in thousands) Revenues Service Revenue $ 03:08:09 148 eBook References 148 5 Expenses Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense 6 7 1 19 Total Expenses Net Income 21 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet. Part 9 of 12 Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C 0.25 points Prepare the statement of retained earnings. (Enter your answers in thousands of dollars.) 03:07:34 eBook H & H TOOL, INC. Statement of Retained Earnings At December 31, 2018 (in thousands) Balance, January 1, 2018 Add: Net Income References Less: Dividends Balance, December 31, 2018 $ 21 Req 6A Req 6B Reg 6C Part 9 of 12 Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.) H&H TOOL, INC. Balance Sheet 0.25 points (in thousands) 03:07:03 eBook References 0 0 0 0 0 $ 0 $ 0 Mc