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 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): Debit Credit $ 2. 6 13 0 67 $ 5 21 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 7 4 0 0 0 0 84 9 9 9 9 9 > Supplies Expense Totals 0 $ 109 $ 109 Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $11 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $8. c. Issued additional shares of common stock on April 3 for $30. d. Purchased software on July 4, $11 cash. e. Purchased supplies on account on October 5 for future use, $19. f. Paid accounts payable on November 6, $12. g. Signed a $20 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $174 on December 8, including $47 on credit and $127 collected in cash. i. Recognized salaries and wages expense on December 9, $92 paid in cash. j. Collected accounts receivable on December 10, $31. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $7. 1. Supplies counted on December 31, 2021, $12. m. Depreciation for the year on the equipment, $5. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $13. p. Income tax for the year was $7. It will be paid in 2022. Prepare an income statement. (Enter your answers in thousands of dolla H&H TOOL, INCORPORATED Income Statement (in thousands) 0 0 Req 6A Reg 6B Reg 6C 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 S 0 Balance, December 31, 2021 Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted H & H TOOL, INCORPORATED Balance Sheet (in thousands) 0 Equipment 0 Software $