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) Credit Debit 52 6 13 0 54 21 Account Titles Cash Accounts Receivable Supplies Land Equipment 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 0 $ 96 5.96 Transactions and events during 2021 (summarized in thousands of dollars) follow a Borrowed $11 cash on March 1 using a short-term note b Purchased land on March 2 for future building site paid cash $8 c Issued additional shares of common stock on April 3 for $30 d. Purchased software on July 4, $11 cash. e Purchased supplies on account on October 5 for future use. $19. Paid accounts payable on November 6. $12. 9. Signed a $20 service contract on November 7 to start February 1, 2022 Recorded revenues of $148 on December 8, including $34 on credit and $114 collected in cash. Recognized salaries and wages expense on December 9, $79 paid in cash Collected accounts receivable on December 10, $18. Data for adjusting journal entries as of December 31 k Unrecorded amortization for the year on software. $6. Supplies counted on December 31, 2021 $12 3. Prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.) Credit H & H TOOL. INCORPORATED Unadjusted Trial Balance For the Year Ended December 31, 2021 (in thousands) Account Titles Debit 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 $ 0 5. Prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) H&H TOOL, INCORPORATED Adjusted Trial Balance Debit Credit (in thousands) Account Titles Cash Accounts Receivable Supplies Land Equipment 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 Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Total $ 0 $ Required information 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet. Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C Prepare an income statement. (Enter your answers in thousands of dollars.) H&H TOOL, INCORPORATED Income Statement (in thousands) Req6B > 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet. Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C Prepare the statement of retained earnings. (Enter your answers in thousands of dollars.) H&H TOOL, INCORPORATED Statement of Retained Earnings (in thousands) Balance, January 1, 2021 Balance, December 31, 2021 5 Complete this question by entering your answers in the tabs below. Req6A Req6B Req6C Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus si H&H TOOL INCORPORATED Balance Sheet in thousantis) 0 Equipment 0 Software 0 $ 0 $ 0 9-a. How much net income did H & H Tool, Incorporated generate during 2021? What was its net profit margin 9-b. Is the company financed primarily by liabilities or stockholders' equity? 9-c. What is its current ratio? Complete this question by entering your answers in the tabs below. Req9A Req 98 Reg 9C What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Numerator Denominator 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet. Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C Prepare the statement of retained earnings. (Enter your answers in thousands of dollars.) H&H TOOL, INCORPORATED Statement of Retained Earnings (in thousands) Balance, January 1, 2021 Balance, December 31, 2021 5 Complete this question by entering your answers in the tabs below. Req6A Req6B Req6C Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus si H&H TOOL INCORPORATED Balance Sheet in thousantis) 0 Equipment 0 Software 0 $ 0 $ 0 9-a. How much net income did H & H Tool, Incorporated generate during 2021? What was its net profit margin 9-b. Is the company financed primarily by liabilities or stockholders' equity? 9-c. What is its current ratio? Complete this question by entering your answers in the tabs below. Req9A Req 98 Reg 9C What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Numerator Denominator
