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 Debit Credit

Cash $ $3$

Accounts Receivable $5$

Supplies $12$

Land $0$

Equipment $58$

Accumulated Depreciation $ $6$

Software $16$

Accumulated Amortization $7$

Accounts Payable $5$

Notes Payable $($short$-$term$)0$

Salaries and Wages Payable $0$

Interest Payable $0$

Income Tax Payable $0$

Common Stock $68$

Retained Earnings $8$

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 $ $94$ $ $94$

Transactions and events during $2021($summarized in thousands of dollars$)$ follow:

Borrowed $$12$ cash on March $1$ using a short$-$term note.

Purchased land on March $2$ for future building site; paid cash, $$9.$

Issued additional shares of common stock on April $3$ for $$26.$

Purchased software on July $4,$ $$10$ cash.

Received supplies on account on October $5$ for future use, $$18.$

Paid accounts payable on November $6,$ $$13.$

Signed a $$25$ service contract on November $7$ to start February $1,2022.$

Recorded revenues of $$156$ on December $8,$ including $$38$ on credit and $$118$ collected in cash.

Recognized salaries and wages expense on December $9,$ $$83$ paid in cash.

Collected accounts receivable on December $10,$ $$22.$

Data for adjusting journal entries as of December $31$:

Unrecorded amortization for the year on software, $$7.$

Supplies counted on December $31,2021,$ $$10.$

Depreciation for the year on the equipment, $$6.$

Interest of $$1$ to accrue on notes payable.

Salaries and wages earned but not yet paid or recorded, $$12.$

Income tax for the year was $$8.$ It will be paid in $2022.$General Journal tab $-$ Prepare the journal entries to record the transactions $($a$)$ through $($j$).$ Review the accounts as shown in the General Ledger and Trial Balance tabs$.$ Then prepare the necessary adjusting entries $($k$)$ through $($p$)$ to correctly report net income for the period. Then record the closing entry as of December $31.$

General Ledger tab $-$ Each journal entry is posted automatically to the general ledger. Use the drop$-$down button to view the unadjusted, adjusted, or post$-$closing balances in the General Ledger.

Trial Balance tab $-$ You may view either the unadjusted, adjusted, or post$-$closing trial balance by choosing from the drop$-$down.

Income Statement tab $-$ Use the drop$-$down to select the accounts properly included on the income statement. The unadjusted, adjusted, or post$-$closing balances will appear for each account based on your selection.

Statement of Retained Earnings tab $-$ Prepare the statement of retained earnings for the year ended December $31,2021.$

Balance Sheet tab $-$ Use the drop$-$down to select the accounts to properly included on the balance sheet. The unadjusted, adjusted, or post$-$closing balances will appear for each account, based on your selection.

Analysis tab $-$ Calculate the Net Profit Margin and Current Ratio.