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Brothers 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		60
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					65
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	$	84		$	84

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, $160, including $40 on credit and $120 collected in cash.
d.	Issued additional shares of stock for $3.
e.	Recognized wages expense for 2012, $85 paid in cash.
f.	Collected accounts receivable, $24.
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, $17.
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. Prepare and post the closing journal entries for the following. 1. Record entry to close revenue and expense accounts to retained earnings. 2. Record entry to close dividend account to retained earnings.

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