Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) onJanuary 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 recievable	6
supplies	13
land	0
equipment	64
accumulated depreciation		5
software	18
accumulated amortization		4
accounts payable		4
notes payable (short-term)		0
salaries and wages payable		0
interest payable		0
income tax payable		0
common stock		81
retained earning		9
service revenue		0
salaries and wages	0
depreciation expense	0
amortization expense	0
income tax	0
interest expense	0
supplies expense	0

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, $168, including $44 on credit and $124 collected in cash.

4. Issued additional shares of stock for $4.

5. Recognized salaries and wages expense for 2015, $89 paid in cash.

6. Collected accounts receivable, $28.

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, $4.
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 2016.

A. Prepare an income statement

B. Prepare a statement of retained earning

C. Prepare balance sheet