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Required information [The following information applies to the questions displayed below.) Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows the amounts are rounded to thousands of dollars to simplify): 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 Debit Credit $ 4 4 11 0 53 $ 7 20 7 6 0 0 0 0 65 7 0 0 0 0 0 0 0 $92 $92 Transactions and events during 2018 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $7. C. Issued additional shares of common stock on April 3 for $31. d. Purchased software on July 4, $12 cash. e. Purchased supplies on account on October 5 for future use, $17. f. Paid accounts payable on November 6, $14. g. Signed a $30 service contract on November 7 to start February 1, 2019. h. Recorded revenues of $146 on December 8, including $33 on credit and $113 collected in cash. i. Recognized salaries and wages expense on December 9, $78 paid in cash. j. Collected accounts receivable on December 10, $17. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $7. 1. Supplies counted on December 31, 2018, $11. m. Depreciation for the year on the equipment, $7. n. Interest of $2 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $13. p. Income tax for the year was $9. It will be paid in 2019. 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet. Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C Prepare the statement of retained earnings. (Enter your answers in thousands of dollars.) H & H TOOL, INC. Statement of Retained Earnings For the Month Ended December 31, 2018 (in thousands) Balance, January 1, 2018 $ 7 Add: Net Income 13 Balance, December 31, 2018 $ 20 Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.) Assets Current Assets H & H TOOL, INC. Balance Sheet At December 31, 2018 (in thousands) Current Liabilities Liabilities $ 67 Accounts Payable 20 Salaries and Wages Payable 11 Income Tax Payable Interest Payable Notes Payable (short-term) $ Cash Accounts Receivable Supplies OOOO OOOOO 9 13 9 2 13 Total Current Assets 98 46 Land 7 Total Current Liabilities Stockholders' Equity Common Stock Retained Earnings $ $ 96 Equipment Software OOO 39 X 18 X SIS 57 20 X X 0 116 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets $ 162 $ 162 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted