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) Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Incose Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Incone Tax Expense Interest Expense Supplies Expense Totals 12 60 15 71 $95 $95 K Prey4 of 4 Next Transactions and events during 2018 (summarized in thousands of dollars) follow a Borrowed $12 cash on March 1 using a short-term note b Purchased land on March 2 for future building site; paid cash, $9 c Issued additional shares of common stock on April 3 for $23. d Purchased software on July 4, $10 cash e Purchased supplies on account on October 5 for future use, $18 f Paid accounts payable on November 6, $13 g Signed a $25 service contract on November 7 to start February 1, 2019 h Recorded revenues of $160 on December 8, including $40 on credit and $120 collected in cash. i Recognized salaries and wages expense on December 9, $85 paid in cash Book Print erences Collected accounts receivable on December 10, $24 Data for adjusting journal entries as of December 31 k. Unrecorded amortization for the year on software, $5 I Supplies counted on December 31, 2018, $10 m Depreciation for the year on the equipment, $6. n Interest of $1 to accrue on notes payable o Salaries and wages earned but not yet paid or recorded, $12 p. Income tax for the year was $8. It will be paid in 2019 (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100). 12 1 Mar 01, 2018 Cash Notes Payable (short-term) 12 2 Mar 02, 2018 Land Cash 9 3Apr 03, 2018 Cash 23 Common Stock 23 /4 10 Jul 04, 2018Software Cash 10 5 Oct 05, 2018 Supplies 18 Accounts Payable 18 6 Nov 06, 2018 Accounts Payable 13 Cash 13 /7Nov 07, 2018 No Journal Entry Required 120 /8Dec 08, 2018 Cash 40 Accounts Receivable Service Revenue 160 85 9 Dec 09, 2018 Salaries and Wages Expense 85 Cash 24 / | 10 | Dec 10, 2018 | Cash Accounts Receivable 24 ces | 11 Dec 31, 2018 Amortization Expense Accumulated Amortization 12Dec 31, 2018 Supplies Expense 20 Supplies 20 13 Dec 31, 2018 Depreciation Expense 6 Accumulated Depreciation Equipment 14 Dec 31, 2018 Interest Expense Interest Payable 14Dec 31, 2018 Interest Expense Interest Payable 15 Dec 31, 2018 Salaries and Wages Expense 12 Salaries and Wages Payable 12 16 Dec 31, 2018 Income Tax Expense 8 Income Tax Payable 8 17Dec 31, 2018 Service Revenue 160 Amortization Expense Income Tax Expense Interest Expense Supplies Expense Depreciation Expense Salaries and Wages Expense Retained Earnings 5 20 6 12 108 H & H TOOL, INC. Income Statement For the Year Ended December 31, 2018 in thousands) Revenues Cash 65 Service Revenue 65 Expenses Interest Expense Amortization Expense Salaries and Wages Expense Supplies Expense Depreciation Expense Income Tax Expense 85 Total Expenses 85 Net Income S (20) KTrial Balance General Trial Balance Statement Earnings Income Statement of General Requirement Journal Retained Balance SheetAnalysis Prepare the statement of retained earnings for the year ended December 31, 2018. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. Post-closing H & H TOOL, INC Statement of Retained Earnings For the Year Ended December 31, 2018 (in thousands) Balance, January 1, 2018 Add Net Income (20) 5 (20) Income Statement Add: Net Income Less Dividends Balance, December 1, 2018 Balance Sheet Assets Liabilities Current Assets Current Liabilities 65 21Notes Payable (short-term) 10 10 12 12 Accounts Payable Cash Accounts Receivable Supplies Salaries and Wages Payable Interest Payable Income Tax Payable Total Current Liabilities 43 Total Current Assets Land Equipment Software Accumulated Depreciation-Buildings Accumulated Amortization Current Liabilities 60 Common Stock 94 (25) 35 Retained Earnings 190 233 (10) Total Assets S 140 Total Liabilities and Stockholders Equity