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, follow:s (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 $ 2 6 13 0 0 0 74 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 building site; paid cash, $8. 3. Earned revenues for 2015, $142, including $31 on credit and $111 collected in cash. 4. Issued additional shares of stock for $4 5. Recognized salaries and wages expense for 2015, $76 paid in cash. 6. Collected accounts receivable, $15 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, $4 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, $11. 16.Income tax for the year was $7. It will be paid in 2016 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.) 4. View transaction list 1 Record the unrecorded amortization for the year on software, $4 2 Record the adjusting entry for supplies counted on December 31, 2015 for $12. 3 Record the adjusting entry for depreciation for 2015, $5. / 4 Record the adjusting entry for accrued interest for $1 on notes payable. Credit 5 Record the adjusting entry for salaries and wages earned/ but not paid for $11 Record the adjusting entry for income tax expense for 2015 for $7 that will be paid in 2016 6 Note:-journal entry has been entered 5. Post the adjusting entries from requirement 4 and prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) H &H TOOL, INC Adjusted Trial Balance in thousands) Debit Credit 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 Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Total 0 6.a Prepare an income statement. H & H TOOL, INC Income Statement in thousands) evenues Service Revenue 168 Total Revenues 168 xpenses 102 4 7 Salaries and Wages Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Depreciation Expense Total Expenses 139 et Income 29 6.b Prepare a statement of retained earnings. H & H TOOL, INC. Statement of Retained Earnings in thousands) Balance, January 1, 2015 Add: Net Income Less: Dividends Balance, December 31, 2015 139 29 168 6.c Prepare balance sheet. (Amounts to be deducted should be indicated by a minus sign.) H & H TOOL, INC. Balance Sheet (in thousands) 0 Equipment Software 0 0 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.) View transaction list View journal entry worksheet Transaction General Journal Debit Credit Amortization Expense Accumulated Amortization Supplies Expense 20 Supplies Depreciation Expense 20 Accumulated Depreciation Interest Expense Interest Payable Salaries and Wages Expense Salaries and Wages Payable 13 13 8. Post the closing entry from requirement 7 and prepare a post-closing trial balance. (Enter your answers in thousands of dollars.) H & H TOOL, INC Post-Closing Trial Balance (in thousands) Account Titles Debit Credit 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 Dividends Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense 46 12 61 10 26 12 13 7 162 20 5 6 7 Totals 313 $ 313 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-a. Net Income Net Profit Margin 9-b. Is the company financed primarily by liabilities or stockholders' equity? Stockholders' Equity OLiabilities 9-c. What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Numerator Denominator