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	2
Accounts Receivable	6
Supplies	13
Land	0
Equipment	67
Accumulated Depreciation		5
Software	21
Accumulated Amortization		7
Accounts Payable		4
Notes Payable(short term)		0
Salaries and Wages Payable		0
Interest Payable		0
Income Tax Payable		0
Common Stock		84
Retained Earnings		9
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	109	109

Transactions during 2015 (summarized in thousands of dollars) follow:

1.	Borrowed $11 cash on a six-month note payable dated March 1, 2015.
2.	Purchased land for future building site; paid cash, $8.
3.	Earned revenues for 2015, $174, including $47 on credit and $127 collected in cash.
4.	Issued additional shares of stock for $4.
5.	Recognized salaries and wages expense for 2015, $92 paid in cash.
6.	Collected accounts receivable, $31.
7.	Purchased software, $11 cash.
8.	Paid accounts payable, $12.
9.	Purchased supplies on account for future use, $19.
	10.Signed a $20 service contract to start February 1, 2016.

Data for adjusting journal entries:

11.

Unrecorded amortization for the year on software, $7.

12.

Supplies counted on December 31, 2015, $12.

13.

Depreciation for the year on the equipment, $5.

14.

Accrued interest of $1 on notes payable.

15.

Salaries and wages earned but not yet paid or recorded, $13.

16. Income tax for the year was $7. It will be paid in 201

2) Record journal entries for transactions (1) through (10). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.)

3, 5 and 8.

Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry. (Enter your answers in thousands of dollars.) Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance. Record the adjusting journal entries (11) through (16). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) Post the adjusting entries from requirement 4 and prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) Prepare an income statement. Prepare a statement of retained earnings. Prepare balance sheet. (Amounts to be deducted should be indicated by a minus sign.) Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) Post the closing entry from requirement 7 and prepare a post-closing trial balance. (Enter your answers in thousands of dollars.) How much net income did H & H Tool, Inc., generate during 2015? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Profit Profit" to 2 decimal places.) What is its current ratio? (Enter your answers in thousands of dollars.)