Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9 [The following information applies to the questions displayed below.) Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

9 [The following information applies to the questions displayed below.) Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Incorporated) on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (amounts are rounded to thousands of dollars to simplify). Account Titles Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Deferred Revenue Common Stock Retained Earnings Debit Credit $5 4 2 6 12 3 Service Revenue cest Supplies Expense Depreciation Expense Salaries and Wages Expense Amortization Expense Interest Expense Income Tax Expense Totals 0 $ 29 $ 29 Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $15 cash on July 2. c. Issued additional shares of common stock on July 3 for $5. d. Purchased additional equipment on August 4, $3 cash. e. Received supplies on account on supplies on September 5 for future use, $10. Darded in the main of 7 inchidian to and 10 and in each 5 of 9 ped e. Received supplies on account on supplies on September 5 for future use, $10. On December 6, recorded revenues in the amount of $57, including $9 on credit and $48 received in cash. g. Paid salaries and wages expenses on December 7, $27. h. Collected accounts receivable on December 8, $8. Paid accounts payable on December 9, $11. J. Received a $4 deposit on December 10 for work to start January 15, 2022. Data for adjusting journal entries on December 31: k. Amortization for 2021, $4. Supplies of $4 were counted on December 31, 2021. m. Depreciation for 2021, $2. n. Accrued interest on notes payable of $3. o. Salaries and wages earned but not yet paid, $3. p. Income tax for 2021 was $5 and will be paid in 2022. int ences Required: 5. Prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) LAZY SOFA FURNITURE, INCORPORATED Adjusted Trial Balance (in thousands) Account Titles Debit Credit Cash Accounts Receivable Supplies Equioment 4 of 9 LAZY SOFA FURNITURE, INCORPORATED Adjusted Trial Balance (in thousands) Account Titles Debit Credit S Cash kipped Accounts Receivable eBook Print eferences Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Deferred Revenue Common Stock Retained Earnings Service Revenue Supplies Expenses Salaries and Wages Expenses Depreciation Expense Amortization Expense Interest Evnance Part 4 of 9 Required information Cash Accounts Receivable Supplies 2.6 points Skipped eBook Print Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Deferred Revenue Common Stock Retained Earnings Service Revenue References Supplies Expenses Salaries and Wages Expenses: Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Totals $ 0 $ 0 Required information View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 k. Amortization Expense Accumulated Amortization 2 L Supplies Expense Supplies 4 4 3 m Depreciation Expense Accumulated Depreciation 2 2 4 n. Interest Expense Interest Payable 5 0. Salaries and Wages Expense Salaries and Wages Payable 6. P. Income Tax Expense Income Tax Payable 3 3 3 3 5 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

More Books

Students also viewed these Accounting questions