C4-2 (Algo) From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, LO 4-5, LO 4-6] [The following information applies to the questions displayed below.] Brothers Harry and Hermon Housyerday began operations of their mochine 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): Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $12 cosh on March 1 using a short-term note. b. Purchased land on March 2 for future bullding site; poid cash, $9. c. Issued additional shores of common stock on April 3 for $29. 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 Fel3ruary 1. 2022. h. Recorded revenues of $172 on December 8 , including $46 on creclit and $126 collected in cash. 1. Recognized salaries and wages expense on December 9,$91 paid in cash. j. Collected accounts receivable on December 10,$30. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $6. 1. Supplies counted on December 31, 2021, \$10. m. Depreciation for the yeor on the equipment. $6. n. Interest of $1 to occrue on notes poyable. o. Salaries and wages earned but not yet paid or recorded, \$12. p. Income tax for the year was $8. It will be paid in 2022 . Prepare the statement of retained earnings. (Enter your answers in thousands of dollars.)