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 Titles	Debit			Credit
Cash	$	3
Accounts Receivable		5
Supplies		12
Land		0
Equipment		52
Accumulated Depreciation				$	6
Software		22
Accumulated Amortization					8
Accounts Payable					5
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Common Stock					67
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 2018 (summarized in thousands of dollars) follow:

1. Borrowed $12 cash on March 1 using a short-term note.
2. Purchased land on March 2 for future building site; paid cash, $9.
3. Issued additional shares of common stock on April 3 for $32.
4. Purchased software on July 4, $10 cash.
5. Purchased supplies on account on October 5 for future use, $18.
6. Paid accounts payable on November 6, $13.
7. Signed a $25 service contract on November 7 to start February 1, 2019.
8. Recorded revenues of $144 on December 8, including $32 on credit and $112 collected in cash.
9. Recognized salaries and wages expense on December 9, $77 paid in cash.
10. Collected accounts receivable on December 10, $16.

Data for adjusting journal entries as of December 31:

11. Unrecorded amortization for the year on software, $8.
12. Supplies counted on December 31, 2018, $10.
13. Depreciation for the year on the equipment, $6.
14. Interest of $1 to accrue 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 2019.

2. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)-(j), adjusting entries (k)-(p), and closing entry. (Enter your answers in thousands of dollars.)

3. Prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.)

5. Post the adjusting entries from requirement 4 and prepare an adjusted trial balance. (Enter your answers in thousands of dollars.)

6-c. Prepare the balance sheet.

8. Post the closing entry from requirement 7 and prepare a post-closing trial balance. (Enter your answers in thousands of dollars.)

9-c. What is its current ratio?

Cash Accounts Receivable 3 16X Beg. Bal. (a) (h) 9% 77 10 Beg. Bal. |(h) 32 12 112 32 16 13 End. Bal. 21 End. Bal. 66 Supplies 12 18 Beg. Bal. (e) 20 % End. Bal. 10 Beg. Bal. Accounts Payable 13 5 18 (e) End. Bal. 10 Retained Earnings Beg. Bal. 8 24 X CE1 End. Bal. 32 L Beg. Bal. (e) Supplies Expense 0 20 20 CE1 End. Bal. L 0 H & H TOOL, INC. Unadjusted Trial Balance At December 31, 2018 (in thousands) Account Titles Debit Credit Cash Accounts Receivable Supplies Land 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 Supplies Expense Depreciation Expense Interest Expense Income Tax Expense Totals 0 $ Adjusted Trial Balance (in thousands) Account Titles Credit Cash Debit $ 66 21 10 Accounts Receivable [ Supplies Land 9 52 Equipment Accumulated Depreciation Software 12 32 Accumulated Amortization 12 Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings This is a numeric cell, so please Service Revenue enter numbers only. Salaries and Wages Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Total | $ 3021 $ 144 322 Assets Current Assets H & H TOOL, INC. Balance Sheet At December 31, 2018 (in thousands) Liabilities Current Liabilities 66 Accounts Payable 21 Notes Payable (short-term) 10 Salaries and Wages Payable Interest Payable Income Tax Payable Cash Accounts Receivable 10 12 12 Supplies hle 8 Total Current Assets 97 Total Current Liabilities 43 Land Stockholders' Equity Common Stock Equipment 52 $ 99 20 Accumulated Depreciation 6 X 58 Retained Earnings Software 32 8 Accumulated Amortization 40 119 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets 204 162 Credit For the Year Ended December 31, 2018 (in thousands) Account Titles Debit Cash $ 66 Accounts Receivable 21 Supplies 10 Land Equipment 52 Accumulated Depreciation 12 Software Accumulated Amortization 16 10 12 12 Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings 99 J Dividends Service Revenue 144 X Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense 89 20 X 6 X 8 X 1% 8 X 190 Totals $ $ 190 Numerator Current Ratio Total Stockholders' Equity Total Liabilities $ $ 122 43 2.84 Denominator Cash Accounts Receivable 3 16X Beg. Bal. (a) (h) 9% 77 10 Beg. Bal. |(h) 32 12 112 32 16 13 End. Bal. 21 End. Bal. 66 Supplies 12 18 Beg. Bal. (e) 20 % End. Bal. 10 Beg. Bal. Accounts Payable 13 5 18 (e) End. Bal. 10 Retained Earnings Beg. Bal. 8 24 X CE1 End. Bal. 32 L Beg. Bal. (e) Supplies Expense 0 20 20 CE1 End. Bal. L 0 H & H TOOL, INC. Unadjusted Trial Balance At December 31, 2018 (in thousands) Account Titles Debit Credit Cash Accounts Receivable Supplies Land 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 Supplies Expense Depreciation Expense Interest Expense Income Tax Expense Totals 0 $ Adjusted Trial Balance (in thousands) Account Titles Credit Cash Debit $ 66 21 10 Accounts Receivable [ Supplies Land 9 52 Equipment Accumulated Depreciation Software 12 32 Accumulated Amortization 12 Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings This is a numeric cell, so please Service Revenue enter numbers only. Salaries and Wages Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Total | $ 3021 $ 144 322 Assets Current Assets H & H TOOL, INC. Balance Sheet At December 31, 2018 (in thousands) Liabilities Current Liabilities 66 Accounts Payable 21 Notes Payable (short-term) 10 Salaries and Wages Payable Interest Payable Income Tax Payable Cash Accounts Receivable 10 12 12 Supplies hle 8 Total Current Assets 97 Total Current Liabilities 43 Land Stockholders' Equity Common Stock Equipment 52 $ 99 20 Accumulated Depreciation 6 X 58 Retained Earnings Software 32 8 Accumulated Amortization 40 119 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets 204 162 Credit For the Year Ended December 31, 2018 (in thousands) Account Titles Debit Cash $ 66 Accounts Receivable 21 Supplies 10 Land Equipment 52 Accumulated Depreciation 12 Software Accumulated Amortization 16 10 12 12 Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings 99 J Dividends Service Revenue 144 X Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense 89 20 X 6 X 8 X 1% 8 X 190 Totals $ $ 190 Numerator Current Ratio Total Stockholders' Equity Total Liabilities $ $ 122 43 2.84 Denominator