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 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 HANOR 2 Debit $3 5 12 0 58 16 $94 Credit $6 nooooge $94 Transactions and events during 2021 (summarized in thousands of dollars) follow a Borrowed $12 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site, paid cash, $9 c. Issued additional shares of common stock on April 3 for $26. d Purchased software on July 4, $10 cash. e. Purchased supplies on account on October 5 for future use, $18 f Paid accounts payable on November 6, $13 g Signed a $25 service contract on November 7 to start February 1, 2022 h. Recorded revenues of $156 on December 8, including $38 on credit and $118 collected in cash Recognized salaries and wages expense on December 9, $83 paid in cash Collected accounts receivable on December 10, $22. Data for adjusting journal entries as of December 31 2. Record journal entries for transactions (a) through ). (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.) View transaction list Journal entry worksheet 2 Transaction 3 Note: Enter debits before credits. Record entry 4 5 Record $12 cash borrowed on March 1 using a short-term note. General Journal 6 Clear entry 7 8 Debit 9 10 Credit View general journal Record journal entries for transactions (a) through (). (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.) View transaction list 2 Record land purchased on March 2 for future building site; paid cash, $9. 3 Record additional shares of common stock issued on April 3 for $26. 4 Record software purchased on July 4, $10 cash. 5 Record supplies purchased on account on October 5 for future use, $18. 6 Record accounts payable paid on November 6, $13. 7 Record the $25 service contract signed on November 7 to start February 1, 2022. Note : journal entry has been entered Clear entry Record entry X chatd / / / 10 Credit View general journal 3. Prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.) H&H TOOL, INCORPORATED Unadjusted Trial Balance Account Titles Cashi Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software (in thousands) 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 Debit Credit 27 Required: 4. Record the adjusting journal entries (k) through (p). (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.) View transaction list 1 Record the unrecorded amortization for the year on software, $7. 2 Record the adjusting entry for supplies counted on December 31, 2021 for $10. 3 Record the adjusting entry for depreciation for the year on the equipment, $6. 4 Record the adjusting entry for accrued interest for $1 on notes payable. 5 Record the adjusting entry for salaries and wages earned but not paid for $12. Note Journal entry has been entered Clear entry Record entry X Credit View general journal 4. Record the adjusting journal entries (k) through (p). (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.) View transaction list 2 Record the adjusting entry for supplies counted on December 31, 2021 for $10. 3 Record the adjusting entry for depreciation for the year on the equipment, $6. 4 Record the adjusting entry for accrued interest for $1 on notes payable.. 5 Record the adjusting entry for salaries and wages earned but not paid for $12. 5 Record the adjusting entry for income tax for the year was $8. It will be paid in 2022. journal entry has been entered Clear entry Note: Record entry X Credit View general journal 5. Prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) H&H TOOL, INCORPORATED Adjusted Trial Balance Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software (in thousands) 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 Debit Credit 4 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 6C Prepare an income statement. (Enter your answers in thousands of dollars.) H&H TOOL, INCORPORATED Income Statement Reg 6A Req 68 (in thousands) Complete this question by entering your answers in the tabs below. Req 6A Req 68 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 Req 6C 4 Reg 6A Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.) H&H TOOL, INCORPORATED Balance Sheet Equipment Software Reg 6B Req 6C (in thousands) Complete this question by entering your answers in the tabs below. Reg 9A Req 98 Is the company financed primarily by liabilities or stockholders' equity? Stockholders' Equity Liabilities Reg 9C Req 9A Req 98 Numerator Denominator Req 9C What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio