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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, 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 Debit Credit Cash $ 2 Accounts Receivable 6 Supplies 13 Land Equipment 64 Accumulated Depreciation $ 5 Software 18 Accumulated Amortization Accounts Payable 4 Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock 81 Retained Earnings 9 Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals $ 103 $ 103 @ Transactions and events during 2021 (summarized in thousands of dollars) follow: Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $11 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site; paid cash, $8. c. Issued additional shares of common stock on April 3 for $27. d. Purchased software on July 4, $11 cash. e. Purchased supplies on account on October 5 for future use, $19. f. Paid accounts payable on November 6, $12. 9. Signed a $20 service 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. 1. Recognized salaries and wages expense on December 9, $89 paid in cash. 1. Collected accounts receivable on December 10, $28. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software, $4. I Supplies counted on December 31, 2021, $12. m. Depreciation for the year on the equipment, $5. n. Interest of $1 to accrue on notes payable. o. Salaries and wages earned but not yet paid or recorded, $13. p. Income tax for the year was $7. It will be paid in 2022. Req 6A Req 6B Req 6C Prepare an income statement. (Enter your answers in thousands of dollars.) H&H TOOL, INCORPORATED Income Statement (in thousands) 0 0 Complete this question by entering your answers in the Reg 6A Reg 6B Req 6C Prepare the statement of retained earnings. (Enter your answer H&H TOOL, INCORPORATED Statement of Retained Earnings (in thousands) Balance, January 1, 2021 $ 0 Balance, December 31, 2021 Required information 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, INCORPORATED Balance Sheet (in thousands) 0 Equipment 0 Software 0 $ 0 0

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