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):

Account TitlesDebitCreditCash$2Accounts Receivable6Supplies13Land0Equipment51Accumulated Depreciation$5Software24Accumulated Amortization4Accounts Payable4Notes Payable (short-term)0Salaries and Wages Payable0Interest Payable0Income Tax Payable0Common Stock74Retained Earnings9Service Revenue0Salaries and Wages Expense0Depreciation Expense0Amortization Expense0Income Tax Expense0Interest Expense0Supplies Expense0Totals$96$96

Transactions and events during 2018 (summarized in thousands of dollars) follow:

1. Borrowed $11 cash on March 1 using a short-term note.
2. Purchased land on March 2 for future building site; paid cash, $8.
3. Issued additional shares of common stock on April 3 for $33.
4. Purchased software on July 4, $11 cash.
5. Purchased supplies on account on October 5 for future use, $19.
6. Paid accounts payable on November 6, $12.
7. Signed a $20 service contract on November 7 to start February 1, 2019.
8. Recorded revenues of $142 on December 8, including $31 on credit and $111 collected in cash.
9. Recognized salaries and wages expense on December 9, $76 paid in cash.
10. Collected accounts receivable on December 10, $15.

Data for adjusting journal entries as of December 31:

1. Unrecorded amortization for the year on software, $4.
2. Supplies counted on December 31, 2018, $12.
3. Depreciation for the year on the equipment, $5.
4. Interest of $1 to accrue on notes payable.
5. Salaries and wages earned but not yet paid or recorded, $11.
6. Income tax for the year was $7. It will be paid in 2019.
7. 6-a.Prepare an income statement.
8. 6-b.Prepare the statement of retained earnings.
9. 6-c.Prepare the balance sheet.