rothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2010. The annual reporting period ends December 31. The trial balance on January 1, 2012, follows (the amounts are rounded to thousands of dollars to simplify):

Account Titles	Debit			Credit
Cash	$	3
Accounts Receivable		5
Supplies		12
Land		0
Equipment		58
Accumulated Depreciation				$	6
Other Noncurrent Assets		4
Accounts Payable					5
Notes Payable (short-term)					0
Wages Payable					0
Interest Payable					0
Income Tax Payable					0
Contributed Capital					63
Retained Earnings					8
Dividends Declared		0
Service Revenue					0
Wages Expense		0
Depreciation Expense		0
Income Tax Expense		0
Interest Expense		0
Supplies Expense		0
Totals	$	82		$	82

Transactions during 2012 (summarized in thousands of dollars) follow:
a.	Borrowed $12 cash on a six-month note payable dated March 1, 2012.
b.	Purchased land for future building site, paid cash, $9.
c.	Earned revenues for 2012, $156, including $38 on credit and $118 collected in cash.
d.	Issued additional shares of stock for $3.
e.	Recognized wages expense for 2012, $83 paid in cash.
f.	Collected accounts receivable, $22.
g.	Purchased other noncurrent assets, $10 cash.
h.	Paid accounts payable, $13.
i.	Purchased supplies on account for future use, $18.
j.	Signed a $25 service contract to start February 1, 2013.
k.	Declared and paid a cash dividend, $16.
Data for adjusting journal entries:
l.	Supplies counted on December 31, 2012, $10.
m.	Depreciation for the year on the equipment, $6.
n.	Accrued interest of $1 on notes payable.
o.	Wages earned not yet paid or recorded, $12.
p.	Income tax for the year was $8. It will be paid in 2013.

1)

Prepare an adjusted trial balance. (Enter your answers in thousands of dollars.)

2) Prepare an income statement, statement of retained earnings, and balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.)

3)

Prepare and post the closing journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.)

4)Prepare a post-closing trial balance.

5)

How much net income did H & H Tool, Inc., generate during 2012? What was its net profit margin? (Enter "Net Income" in thousands of dollars. Round "Net Margin Profit" to 1 decimal place.)

Is the company financed primarily by liabilities or stockholders equity?

	Liabilities
	Stockholders' Equity

9-c.	What is its current ratio? (Enter your answers in thousands of dollars.)