6.a) Prepare an income statement

6.b) Prepare a statement of retained earnings

Balance, January 1,2015

Balance, December 31, 2015

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

7. Prepare the closing journal entry ( Record entry to close revenue and expense accounts to retained earnings)

8. Post the closing entry from requirement 7 and prepare a post-closing trial balance

9a) How much net income did H & H Tool, Inc., generate during 2015? What was its net profit margin? (2 decimal places)

9b) 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 trial balance on January 1, 2015, 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 Debit Credit 6 0 67 4 0 0 0 0 0 Totals $109 $109 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 building site; paid cash, $8. 3. Eamed revenues for 2015, $174, including $47 on credit and $127 collected in cash. 4. Issued additional shares of stock for $4 5. Recognized salaries and wages expense for 2015, $92 paid in cash. 6. Collected accounts receivable, $31 7. Purchased software, $11 cash. 8. Paid 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 entries: 11. Unrecorded amortization for the year on software, $7. 12. Supplies counted on December 31, 2015, $12. 13. Depreciation for the year on the equipment, $5. 14. Accrued interest of $1 on notes payable 15. Salaries and wages earned but not yet paid or recorded, $13 16. Income tax for the year was $7. It will be paid in 2016