Question 6

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 simplitys: Account Titles Debit credit Cash 53 Accounts Receivable 5 Supplies 12 Land e Equipment 55 Accumulated Depreciation $6 software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Mages 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 594 $94 19 70 Transactions and events during 2018 (summarized in thousands of dollars) follow 2. Borrowed $12 cash on March 1 using a short-term note b. Purchased land on March 2 for future building site; paid cash, $9. c Issued additional shares 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. Pald accounts payable on November 6, $13. g. Signed a $25 service contract on November 7 to start February 1, 2019, in Recorded revenues of $150 on December 8, including $35 on credit and $115 collected in cash Recognized salaries and wages expense on December 9, $80 paid in cash Collected accounts receivable on December 10, $19 Data for adjusting journal entries as of December 31 Data for adjusting Journal entries as of December 31: k. Unrecorded amortization for the year on software, $5. 1. Supplies counted on December 31, 2018. $10. m. Depreciation for the year on the equipment, $6. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet pald or recorded. $12. p. Income tax for the year was $8. 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. Reg 6A Reg 6B Req 6C Prepare an income statement. (Enter your answers in thousands of dollars.) H&H TOOL, INC. Income Statement {in thousands) RGA Req 6B > Reg 6A Req 6B Req 6C Prepare the statement of retained earnings. (Enter your answers H & H TOOL, INC. Statement of Retained Earnings (in thousands) Balance, January 1, 2018 Balance, December 31, 2018 2 0