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 Debit Credit

Cash $ 4

Accounts Receivable 4

Supplies 11

Land 0

Equipment 50

Accumulated Depreciation $ 7

Software 23

Accumulated Amortization 5

Accounts Payable 6

Notes Payable (short-term) 0

Salaries and Wages Payable 0

Interest Payable 0

Income Tax Payable 0

Common Stock 67

Retained Earnings 7

Service Revenue 0

Salaries and Wages Expense 0

Depreciation Expense 0

Amortization Expense 0

Income Tax Expense 0

Interest Expense 0

Supplies Expense 0

Totals $ 92 $ 92

Transactions during 2015 (summarized in thousands of dollars) follow:

1. Borrowed $13 cash on a six-month note payable dated March 1, 2015.

2. Purchased land for future building site; paid cash, $7.

3. Earned revenues for 2015, $140, including $30 on credit and $110 collected in cash.

4. Issued additional shares of stock for $2.

5. Recognized salaries and wages expense for 2015, $75 paid in cash.

6. Collected accounts receivable, $14.

7. Purchased software, $12 cash.

8. Paid accounts payable, $14.

9. Purchased supplies on account for future use, $17.

10. Signed a $30 service contract to start February 1, 2016.

Data for adjusting journal entries:

11. Unrecorded amortization for the year on software, $5.

12. Supplies counted on December 31, 2015, $11.

13. Depreciation for the year on the equipment, $7.

14. Accrued interest of $2 on notes payable.

15. Salaries and wages earned but not yet paid or recorded, $13.

16. Income tax for the year was $9. It will be paid in 2016.

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. for year ended december 31, 2015 6.b Prepare a statement of retained earnings. for year ended december 31,2015 6.c Prepare balance sheet. (Amounts to be deducted should be indicated by a minus sign.) at december 31, 2015 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? (Enter your answers in thousands of dollars.)