H \& H Tool, Inc. C4-2 From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3, and 4) Brothers Harry and Herman Hausyerday began operations of their machine shop ( H&H Tool, Inc.) 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 (summarixed in thousands of dollars) follow: a. Borrowed si 2 cash on Mareh 1 using a short term note. b. Purchased land on Nlarch L for future building sile: paid cesh. \$9. c. Issued additional shares of common stock on Aprit 3 for $23. d. Purchased software on fuly i. 510 cash. e. Punchased supplies on acoount an olctober for for fure use, s. 8 . f. Paid accounts pay able con Nonember 6.4 . 3. g. Signed a \$25 service contmet on November fo start february 1. 2022. h. Recorded revenues of $160 on Lecember 8 , including $40 on credit and $120 collected in cash. i. Recognized sallaries and wages expense on December 9 s s5 paid in cach. j. Collected accounts receivable on December 10, \$24. Data for adjusting journal entries as of December 31 . k. Unrecorded amortization for the year on software, is. 1. Supplies counted on December 31, 2021, 510 . m. Depreciation for the yeat on the equipinent. 86. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid on recorded. 812 . p. Income tax for the year was s8. It will bo paid in 2022. Required: 1. Set up T-accounts tor the decounts on the mial batance ant enter hegmning balances. If you are completing this problem in Connect using the general ledget tool, this requirement will be compleled for you. 2. Record journal entries for transictions (a) thmough (j). 3. Post the journal entries from requirement 2 to l Iaccounts and prepare an unadjusted trial balance. If you are completing this problem in Connect using the general ledger tool, this requirement will be completed for you using your amswers to requirement 2. 4. Record the adjusting journal entres (k) through (). 5. Roxt the adjusting entries from requirenent 4 and yrepare an adjusted lrial balance. If you are completing this problem in Connect using the general ledger tool. this requirement will be completed for you using your previous answers. 6. Prepare an income statement, statement of retained earnings, and balance sheet. 7. Prepare the ciosing journal entry. 8. Post the elosing entry from requirement 7 and prepare a post-closing trial balance. If you are completing this problem in Connect using the general ledger cool, this requirement will be eompleted for you using your previous answers. 9. How much net ineome did H \&. H Fool, Ine, generate during 202 I? What was is net protit margin? Is the company financed primarily by liabilities or stockholders equity? What is its current ratio (rounded to two decimal places)