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 Debit Credit Cash Accounts Receivable Supplies $ 4 4 11 0 56 Land 12 6 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 0 0 68 7 0 0 0 0 0 0 0 $ 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 $28. d. Purchased software on July 4, $12 cash, e Purchased supplies on account on October 5 for future use, $17 Pald accounts payable on November 6, $14 g. Signed a $30 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $152 on December 8, including $36 on credit and $116 collected in cash. Recognized salaries and wages expense on December 9, $81 paid in cash. J. Collected accounts recevable on December 10, $20. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $4. 1. 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. Req 6A Req 6B Req 6C 47 Prepare an income statement. (Enter your answers in thousands H&H TOOL, INCORPORATED Income Statement (in thousands) 0 tes 0 Required: 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 bela Req 6A Req 6B Req 6C Prepare the statement of retained earnings. (Enter your answers in thousa H&H TOOL, INCORPORATED Statement of Retained Earnings (in thousands) Balance, January 1, 2021 Balance, December 31, 2021 $ 0 1 Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transaction General Journal Debit Credit A Record entry Clear entry View general journal