Required information (The following information applies to the questions displayed below) Brothers Harry and Herman Hausyerday began operations of their machine shop M & 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 Debit Credit Cash $4 Accounts Receivable 4 Supplies 11 Land 0 Equipment 53 Accumulated Depreciation $ 7 Software 20 Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock 65 Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense 0 Amortization Expense 0 Income Tax Expense 0 Interest Expense 0 Supplies Expense 0 Totals $92 $92 7 6 0 0 0 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. Pald 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. 1. Recognized salaries and wages expense on December 9, $78 paid in cash. 1. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 6A Reg 6B Req 6C Prepare an income statement. (Enter your answers in thousands of dollars.) H&H TOOL, INC. Income Statement At December 31, 2018 (in thousands) Revenues Service Revenue 146 146 13 X Total Revenues Expenses Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense 20 OOOOO 17 Total Expenses Net Income 55 $ 91% R4 Req 68 > 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 6A Req6B Req 6C Prepare the statement of retained earnings. (Enter your answers in thousands of dollars.) H&H TOOL, INC. Statement of Retained Earnings (in thousands) Balance, January 1, 2018 Balance, December 31, 2018 S 0 Reg 6A Req 6B Reg 6C Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.) H&H TOOL, INC. Balance Sheet (in thousands) 0 0 0 0 0 0 0 IS 9-a. How much net income did H & H Tool, Inc., generate during 2018? What was its net profit margin? 9-b. Is the company financed primarily by liabilities or stockholders' equity? 9-c. What is its current ratio? Complete this question by enterinde your answers in the tabs below. Req 9A Req 9B Req 9c Is the company financed primarily by liabilities or stockholders' equity? Stockholders' Equity Liabilities 9-a. How much net income did H & H Tool, Inc., generate during 2018? What was its net profit margin? 9-b. Is the company financed primarily by liabilities or stockholders' equity? 9-c. What is its current ratio? Complete this question by entering your answers in the tabs below. Reg 9A Req 98 Req 90 What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Numerator Denominator
