1. fill in the two empty blank spots on the income statement.
2. complete the analysis. (Net income & 'Is the company financed primarily by liabilities or stockholders' equity?')
Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Inc.) on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (amounts are rounded to thousands of dollars to simplify). Debit Credit $ 5 1 6 SO 12 6 Account Titles Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (long-term) Salaries and Wagen Payable Interest Payable Income Tax Payable Deferred Revenue Common Stock Retained Earnings Service Revenue Supplies Expense Depreciation Expense Salaries and Wages Expense Amortization Expenses Interest Expense Income Tax Expense Totals 0 0 12 3 0 0 0 0 0 0 $20 520 Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $17 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $22 cash on July 2. c. Issued additional shares of common stock on July 3 for $6. d. Purchased additional equipment on August 4, $2 cash. e. Purchased, on account, supplies on September 5 for future use. $8. f. On December 6, recorded revenues in the amount of $59, including $7 on credit and $52 received in cash. g. Paid salaries and wages expenses on December 7, $23. h. Collected accounts receivable on December 8, $9. 1. Pald accounts payable on December 9, $12. J. Received a $6 deposit on December 10 for work to start January 15, 2019. Data for adjusting journal entries on December 31 k. Amortization for 2018. $6. 1. Supplies of $6 were counted on December 31, 2018 m. Depreciation for 2018, $3. n. Accrued interest on notes payable of $3, o. Wages earned but not yet paid $4. p. Income tax for 2018 was $5 and will be paid in 2019. 1 Adjusieu 20 points LAZY SOFA FURNITURE, INC. Income Statement For the Year Ended December 31, 2018 (in thousands) Revenues Service Revenue $ 59 eBook 0 Print 59 27 Total Revenues Expenses Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense 3 6 5 3 6 0 Total Expenses Net Income 50 A 9 Requirement General General Statement of Trial Balance Income Journal Ledger Statement Retained Balance Sheet Analysis Earnings How much net income did Lazy Sofa Furniture, Inc., generate during 2018? Net Income can be found on Income statement tab. (Hint: Select Adjusted on the dropdown.). Is the company financed primarily by liabilities or stockholders' equity? How much net income did the physical therapy clinic generate during 2018? Net Income ok at Is the company financed primarily by liabilities or stockholders' equily?
