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	$	3
Accounts Receivable		5
Supplies		12
Land		0
Equipment		60
Accumulated Depreciation				$	6
Software		15
Accumulated Amortization					5
Accounts Payable					5
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					71
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	$	95		$	95

Transactions during 2015 (summarized in thousands of dollars) follow:
1.	Borrowed $12 cash on a six-month note payable dated March 1, 2015.
2.	Purchased land for future building site; paid cash, $9.
3.	Earned revenues for 2015, $160, including $40 on credit and $120 collected in cash.
4.	Issued additional shares of stock for $3.
5.	Recognized salaries and wages expense for 2015, $85 paid in cash.
6.	Collected accounts receivable, $24.
7.	Purchased software, $10 cash.
8.	Paid accounts payable, $13.
9.	Purchased supplies on account for future use, $18.
10.	Signed a $25 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, $10.
13.	Depreciation for the year on the equipment, $6.
14.	Accrued interest of $1 on notes payable.
15.	Salaries and wages earned but not yet paid or recorded, $12.
16.	Income tax for the year was $8. It will be paid in 2016.

1. Record Journal entries for 1-10.

2. Set up T accounts for the accounts on the trial balance. include beginning balances, transactions 1-10, adjusting entries 11-16, and closing entry for these following accounts: cash, accounts receivable, supplies, land, equipment, accumulated depreciation, software, accumulated amortization, accounts payable, note payable, salaries and wages payable, interest payable, income tax payable, common stock, retained earnings, service revenue, depreciation expense, amortization expense, income tax expense, interest expense, salaries and wages expense, supplies expense

3. prepare an unadjusted trial balance

4. record adjusting journal entries 11-16

5. post adjusting entries from #4, and prepare an adjusted trial balance

6a. prepare an income statement

6b. prepare statement of retained earnings

6c. prepare balance sheet

7. prepare closing journal entry - record entry to close revenue and expense accounts to retain earnings

8. post closing entry from #7 and prepare a post-closing trial balance