indicated above. on cache dales se journal entries from requirement 1 to T-acos, coiculate ending balances, and pre- 2. Post the journa are an adjusted trial balance. are a classified balance sheet and income statement as of and for the month ended January 31. 3. Prepare a classifie C4-2 From Record m Recording Transactions (Including Adjusting journal Entries) to Preparing ancial Statements and Closing Journal Entries (Chapters 2, 3, and 4) Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, January 1, 2013. The annual reporting period ends December 31. The trial balance on 1. 2015, follows the amounts are rounded to thousands of dollars to simplify): Brothers Harry and January 1, 2015. fo Credit Debit $ 3 5 12 0 60 $ 6 15 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 0 0 0 0 0 0 ustments, Financial Statements, and Financial Results Transactions during 2015 (summarized in thousands of dollars) follow: 1. Borrowed $12 cash on March 1 using a short-term note. 2. Purchased land on March 2 for future building site; paid cash, $9. 3. Issued additional shares of common stock on April 3 for $23. 4. Purchased software on July 4. $10 cash. 5. Purchased supplies on account on October 5 for future use, $18. 6. Paid accounts payable on November 6, $13. 7. Signed a $25 service contract on November 7 to start February 1, 2016. 8. Recorded revenues of $160 on December 8, including $40 on credit and $120 cl d $120 collected in cash. 9. Recognized salaries and wages expense on December 9, $85 paid in cash. 10. Collected accounts receivable on December 10, $24. Data for adjusting journal entries as of December 31: 11. Unrecorded amortization for the year on software, $5. 12. Supplies counted on December 31, 2015, $10. 13. Depreciation for the year on the equipment, $6. 14. Interest of $1 to accrue on notes payable. 15. Salaries and wages earned but not yet paid or recorded, $12. 16. Income tax for the year was $8. It will be paid in 2016. Required: 1. Set up T-accounts for the accounts on the trial balance and enter beginning balances. If you are completing this problem in Connect using the general ledger tool, this requirement will be completed for you. 2. Record journal entries for transactions (1) through (10). 3. Post the journal entries from requirement 2 to T-accounts 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 answers to requirement 2. 4. Record the adjusting journal entries (17) through (16). 5. Post the adjusting entries from requirement 4 and prepare an adjusted trial 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 closing journal entry. 8. Post the closing entry from requirement 7 and prepare a post-closing trial balance. If yo completing this problem in Connect using the general ledger tool, this requirement w completed for you using your previous answers. 9. How much net income did H & H Tool, Inc., generate during 2015? What was its net po margin? Is the company financed primarily by liabilities or stockholders' equity? W current ratio (rounded to two decimal places)? . this requirement will be ers' equity? What is its CA-3 Recording Transactions (Including Adjusting Journal Entries). Preparing Final Statements and Closing Journal Entries, and Computing Net Profit Margin and Current Ratio (Chapters 2, 3, and 4) Drs. Glenn Feltham and Gary Entwistle he s), Preparing Financial Northland Physical Thom