Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Cash Debit $ 3 Credit Accounts Receivable 5 Supplies 12 Land e Equipment 66 Accumulated Depreciation $ 6 Software 21 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 e 0 $ 107 $ 107 Totals $ 107 $ 107 Transactions and events during 2021 (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 $29. 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, 2022. h. Recorded revenues of $172 on December 8, including $46 on credit and $126 collected in cash. i. Recognized salaries and wages expense on December 9, $91 paid in cash. J. Collected accounts receivable on December 10, $30. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $6. 1. Supplies counted on December 31, 2021, $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 2022. Journal entry worksheet 1 2 3 4 5 6 7 8 Record $12 cash borrowed on March 1 using a short-term note. Note: Enter debits before credits. Transaction 6 10 10 General Journal Debit Credit Clear entry > View general journal Journal entry worksheet < 1 3 4 5 6 7. 8 6 Record land purchased on March 2 for future building site; paid cash, $9. Note: Enter debits before credits. Transaction b. 10 110 General Journal Debit Credit View general journal Journal entry worksheet 1 2 383 4 5 6 77 8 9 10 Record additional shares of common stock issued on April 3 for $29. Note: Enter debits before credits. Transaction C. General Journal Debit Credit Journal entry worksheet < 1 2 3 5 6 7. 8 9 10 10 Record software purchased on July 4, $10 cash. Note: Enter debits before credits. Transaction d. General Journal Debit Credit > Journal entry worksheet < 1 2 3 4 6 7 8 9 10 > Record supplies purchased on account on October 5 for future use, $18. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 Record accounts payable paid on November 6, $13. Note: Enter debits before credits. Transaction f. 7 8 6 10 10 General Journal Debit Credit Journal entry worksheet < 2 3 4 5 6 3. 00 8 9 10 10 Record the $25 service contract signed on November 7 to start February 1, 2022. Note: Enter debits before credits. Transaction 9. General Journal Debit Credit > Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 10 > Record revenues of $172 on December 8, including $46 on credit and $126 collected in cash. Note: Enter debits before credits. Transaction h. General Journal Debit Credit Record entry Clear entry View general journal 10 10 Journal entry worksheet < 1 2 3 4 5 6 7 8 Record salaries and wages expense recognized on December 9, $91 paid in cash. Note: Enter debits before credits. Transaction i. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 Record accounts receivable collected on December 10, $30. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal H & H TOOL, INCORPORATED Unadjusted Trial Balance Account Titles Cash Accounts Receivable Supplies Land (in thousands) Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Debit Credit Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Interest Expense Income Tax Expense Totals Journal entry worksheet < 1 2 3 4 5 6 Record the unrecorded amortization for the year on software, $6. Note: Enter debits before credits. Transaction k. General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < 1 3 4 5 6 Record the adjusting entry for supplies counted on December 31, 2021 for $10. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 Record the adjusting entry for depreciation for the year on the equipment, $6. Note: Enter debits before credits. Transaction m. General Journal Debit Credit > Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 5 6 Record the adjusting entry for accrued interest for $1 on notes payable. Note: Enter debits before credits. Transaction n. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5J 6 Record the adjusting entry for salaries and wages earned but not paid for $12. Note: Enter debits before credits. Transaction General Journal Debit Credit Pecord entry Clear entry View general journal Journal entry worksheet < 2 3 4 5 9 Record the adjusting entry for Income tax for the year was $8. It will be paid In 2022. Note: Enter debits before credits. Transaction p. General Journal Debit Credit View general journal H&H TOOL, INCORPORATED Adjusted Trial Balance (in thousands) 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 Debit Credit Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Total Req 6A Req 6B Req 6C Prepare an income statement. (Enter your answers in thousands of dollars. H & H TOOL, INCORPORATED Income Statement (in thousands) Req 6A Req 6B Req 6C Prepare the statement of retained earnings. (Enter yo H & H TOOL, INCORPORATED Statement of Retained Earnings (in thousands) Balance, January 1, 2021 Balance, December 31, 2021 Equipment Software H&H TOOL, INCORPORATED Balance Sheet (in thousands) Req 68 Journal entry worksheet < 1 Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transaction A General Journal Debit Credit Record entry Clear entry View general journal