1) Set up T- Accounts For the accounts on the trial balance and enter beginning balances.

2) Record journal entries for transactions (a) through (j) and post them to the T-accounts

3) Prepare an unadjusted trial Balance

4) Record and post the adjusting journal entries (k) through (p)

5) Prepare an adjusted trial balance.

6) Prepare an income statement, statement of retained earnings, and balance sheet.

7) Prepare and post the closing journal entries.

8) Prepare a post-closing trial balance.

9) How much net income did Lazy Sofa Furniture, Inc. generate during 2018? Is the company financed primarily by liabilities or stockholders equity?

C4-4 From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial 4-4, LO 4-5, LO 4-6 The following information applies to the questions displayed below Statements and Closing lournal Entries (Chapters 2, 3, and 4)/LO 2-3, LO 3,3, Lo 4-1, LO 4-2, LO 43, Lo Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, annual reporting period ends December 31. The trial balance on January 1, 2018, fol thousands of dollars to simplify). nc.) on January 1, 2017. The lows (amounts are rounded to Account Titles Debit Credit $ 5 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (long-term) Salaries and Wages Payable Interest Payable Income Tax Payable Deferred Revenue Common Stock Retained Earnings Service Revenue Supplies Expense Depreciation Expense Salaries and Wages Expense Amortization Expense Interest Expense Income Tax Expense 12 15 Totals $29 29