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 Accounts Receivable Supplies Land Equipment Debit $4 Credit 4 11 53 57 20 0 7 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 Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals 6 0 e 65 7 $92 $92 Transactions and events during 2021 (summarized in thousands of dollars) follow a. Borrowed $13 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site: paid cash, $7. c Issued additional shares of common stock on April 3 for $31. d. Purchased software on July 4, $12 cash e Purchased supplies on account on October 5 for future use, $17 f Paid accounts payable on November 6, $14. g Signed a $30 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $146 on December 8, including $33 on credit and $113 collected in cash Recognized salaries and wages expense on December 9, $78 paid in cash. Collected accounts receivable on December 10, $17. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $7. Supplies counted on December 31, 2021, $11. m. Depreciation for the year on the equipment, $7. n. Interest of $2 to accrue on notes payable. o Salaries and wages earned but not yet paid or recorded, $13. p. Income tax for the year was $9. It will be paid in 2022. 4 Statement of General Requirement Journal General Ledger Trial Balance: Income Statement Retained Earnings Balance Sheet Analysis Prepare the journal entries to record transactions (a) through (). 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. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 3 4 5 6 7 8 17 Borrowed $13 cash on March 1 using a short-term note. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit March 01, 2021 Cash 13 Notes Payable (short-term) Record entry Clear entry View general journal 13 Unadjusted General Ledger Account Accounts Receivable Cash No. Date Debit Credit Balance No. Date Debit January 01, 4 2021 January 01, 2021 1 March 01, 2021 13 17 March 02. 2 10 2021 Credit Balance 4 Supplies Land No. Date Debit Credit Balance No. Date Debit Credit Balance January 01, January 01, 11 0 2021 2021 2 March 02, 2021 7 No. Date Accumulated Depreciation Debit Equipment Credit Balance No. Date Debit Credit Balance January 01, 53 2021 Software Accumulated Amortization No. Date Debit Credit Balance No. Date Debit January 01, 2021 20 January 01, 2021 Accounts Payable No. Date January 01, 2021 Debit Credit Balance 7 Notes Payable (short-term) Credit Balance No. 6 Date January 01, 2021 Debit March 01, 2021 Common Stock No. Date Debit Credit Balance No. January 01, 2021 65 Credit Balance 0 13 13 Retained Earnings Debit Credit Balance X Question 4-Chapter 4 Homewe x stion.com/ext/map/index.html?_con con&external browser=0&launchUrl=https%253A%252F%252Fualearn.blackboard.com%252Fwebap work i Income tax for the year was $9. It will be paid in 2022. Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100)). Saved General Requirement Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Unadjusted Cash Accounts Receivable Supplies Land Accumulated Depreciation Equipment Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Common Stock Retained Earnings Total H&H TOOL, INCORPORATED Trial Balance December 10, 2021 Account Title Debit Credit S 10 4 11 7 53 20 7 6 13 65 7 S 105 $ 105 General Requirement Journal General Ledger Income Trial Balance Statement Statement of Retained Earnings Balance Sheet Analysis Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. Unadjusted H&H TOOL, INCORPORATED Income Statement For the Year Ended December 31, 2021 (in thousands) (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100)). Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Balance Sheet Analysis Earnings Prepare the statement of retained earnings for the year ended December 31, 2021. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. Unadjusted H&H TOOL, INCORPORATED Statement of Retained Earnings For the Year Ended December 31, 2021 (in thousands) Balance, January 1, 2021 0 Balance, December 31, 2021 $ 0 Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis Use the dropdowns to select the accounts properly included on the classified balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Equipment Software D H&H TOOL, INCORPORATED Balance Sheet At December 31, 2021 (in thousands) $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 53 0 53 20 20 0 20 $ 73 $ 0 0 0 (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100)). General Requirement Journal General Ledger Trial Balance Income: Statement Statement of Retained Earnings Balance Sheet Analysis Calculate the Net Income, Net Profit Margin and Current Ratio. Net income can be found on Income statement tab. (Hint: Select Adjusted on the dropdown.) How much net Income did H & H Tool, Incorporated, generate during 2021? What was its net profit margin? (Round "Net Profit Margin" to 1 decimal place) Net income Net Profit Margin % Is the company financed primarily by liabilities or stockholders' equity? What is its current ratio? (Round your answer to 2 decimal places) Current Ratio