Required information 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): Account Titles Cash Accounts Receivable: Debit $ 4 Credit 4 Supplies 11 Land 0 Equipment 50 Accumulated Depreciation $ 7 Software 23 Accumulated Amortization Accounts Payable Notes Payable (short-term) 6 0 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 mtale 0 0 $92 $92 Supplies Expense Totals 0 $ 92 $ 92 Transactions and events during 2021 (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 $34. d. Purchased software on July 4, $12 cash. e. Purchased supplies on account on October 5 for future use, $17. Paid accounts payable on November 6, $14. g. Signed a $30 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $140 on December 8, including $30 on credit and $110 collected in cash. 1. Recognized salaries and wages expense on December 9, $75 paid in cash. J. Collected accounts receivable on December 10, $14. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $5. 1. Supplies counted on December 31, 2021, $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 2022. C4-2 (Algo) Part 5 Required: 5. Prepare an adjusted trial balance. (Enter your answers in thousands of dollars) Required information C4-2 (Algo) Part 5 Required: 5. Prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) H&H TOOL, INCORPORATED Adjusted Trial Balance At December 31, 2021 (in thousands) Account Titles Debit Credit Cash $ 67 Accounts Receivable 20 Supplies 11 Land 7 Equipment 50 Accumulated Depreciation 14 Software 35 Accumulated Amortization 10 Accounts Payable 9 Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable 13 13 2 Required information Cash (in thousands) Account Titles Accounts Receivable Debit Credit $ 67 20 20 Supplies Land Equipment Accumulated Depreciation Software 11 7 50 50 14 35 Accumulated Amortization Accounts Payable 10 9 Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable 13 13 2 9 Common Stock 101 Retained Earnings 7 Service Revenue 140 Salaries and Wages Expense 88 Supplies Expense + 17 Depreciation Expense 7 Amortization Expense Interest Expense Income Tax Expense Total 5 2