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Brothers Harry and Herman Hausyerday began operations of their machine shop (H & 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	$	2
Accounts Receivable		6
Supplies		13
Land		0
Equipment		57
Accumulated Depreciation					$	5
Software		18
Accumulated Amortization						8
Accounts Payable						4
Notes Payable (short-term)						0
Salaries and Wages Payable						0
Interest Payable						0
Income Tax Payable						0
Common Stock						70
Retained Earnings						9
Service Revenue		0
Salaries and Wages Expense		0
Depreciation Expense		0
Amortization Expense		0
Income Tax Expense		0
Interest Expense		0
Supplies Expense		0
Totals	$	96			$	96

Transactions and events during 2018 (summarized in thousands of dollars) follow:

1. Borrowed $11 cash on March 1 using a short-term note.
2. Purchased land on March 2 for future building site; paid cash, $8.
3. Issued additional shares of common stock on April 3 for $27.
4. Purchased software on July 4, $11 cash.
5. Purchased supplies on account on October 5 for future use, $19.
6. Paid accounts payable on November 6, $12.
7. Signed a $20 service contract on November 7 to start February 1, 2019.
8. Recorded revenues of $154 on December 8, including $37 on credit and $117 collected in cash.
9. Recognized salaries and wages expense on December 9, $82 paid in cash.
10. Collected accounts receivable on December 10, $21.

Data for adjusting journal entries as of December 31:

11. Unrecorded amortization for the year on software, $8.
12. Supplies counted on December 31, 2018, $12.
13. Depreciation for the year on the equipment, $5.
14. Interest of $1 to accrue on notes payable.
15. Salaries and wages earned but not yet paid or recorded, $11.
16. Income tax for the year was $7. It will be paid in 2019.

1. Prepare the journal entries to record the transactions (a) through (j). Then prepare the necessary adjusting entries (k) through (p) to correctly report net income for the period. Then record the closing entry as of December 31.

2. Select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account based on selection.

3. Prepare the statement of retained earnings for the year ended December 31, 2018.

4. Select the accounts properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on selection.

5. Calculate the Net Profit Margin and Current Ratio.

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