Ihe annual reporting perlod ends Vecember $31.$ The trial balance on January $1,2021,$ tollows $($the amounts are rounded to thousands of dollars to simplify$)$:

Transactions and events during $2021($summanzed in thousands of dollars$)$ follow:

a$.$ Borrowed $$11$ cash on March $1$ Ling a short$-$term note.

b$.$ Purchased land on March $2$ for future bulling slte: pald cash. $$8.$

c$.$ Issued additional shares of common stock on April $3$ for $$27.$

d$.$ Purchased software on July $4,$ $$11$ cash.

e Recelved supplies on account on October $5$ for future use. $$19.$

$f$ Pald accounts payable on November $6,$$$12$

g$.$ Signed a $$20$ senvice contract on November $7$ to start February $1,2022.$

h$.$ Recorded revenues of $$168$ on December $8.$ including $$44$ on credit and $$124$ collected in cash.

I. Recognized salarles and wages expense on December $9.$$$89$ paid in cash.

J$.$ Collected accounts recelvabile on December $10,$$$28.$

Data for adjusting joumal entries as of December $3$t:

k$.$ Unrecorded amortzation for the year on software. $$4$

I Supplies counted on December $51,2021,$$$12$

m$.$ Depreclation for the year on the equipment $$5.$

n$.$ Interest of $$1$ to accrue on hotes payable.

a$.$ Salarles and wages earned but not yet pald on recorded. $$13.$

p$.$ Income tax for the year was $$7.$ It will be paid in $2022$

C$4-2($Algo$)$ Part $6$

Required:

$5-$a$.$ Prepare an income statement:

$5-$b$.$ Prepare the statement of retained eamings.

s$-$c$.$ Prepare the balance sheet

Complete this question by entering your answers in the tabs below.

Rea $6$ A

Reat $60$

Rea $69$

Prepare an income statement. $($Enter your answers n chousands of collats.$)$

H& HTOOL, MCORPORATED

Income statement

$($in thousands$)$