Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture) on Jan. 1, 2017. The annual reporting period ends Dec 31. The trial balance on January 1, 2018 follows

Account Title	Debit	Credit
Cash	$5
Accounts Receivable	4
Supplies	2
Equipment	6
Accumulated Depreciation		$0
Software	12
Accumulated Amortization		3
Accounts Payable		7
Notes Payable		0
Salaries and Wages		0
Interest Payable		0
Income Tax Payable		0
Deferred Revenue		0
Common Stock		15
Retained Earnings		4
Service Revenue	0
Supplies Expense	0
Depreciation Expense	0
Salaries and wages expense	0
Amortization Expense	0
Interest Expense	0
Income Tax Expense	0
Total	$29	$29

Required: 1.) Set up T-accounts for the accounts on the trial balance and enter beginning balance.

2.) Record Journal entries for transactions (a) through (j)

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

4.) Prepare the closing journal entry

Transactions during 2018 (summarized in thousands of dollars) follow. a Borrowed $21 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $18 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. Purchased, on account, supplies on September 5 for future use. S f On December g. Paid salaries and wages expenses on December 7. $35 h Collected accounts receivable on December 8, $8. i Paid accounts payable on December 9, $11 j Received a $3 deposit on December 10 for work to start January 15. 2019. 6, recorded revenues in the amount of $65, including $9 on credit and $56 received in cash Data for adjusting journal entries on December 31 k. Amortization for 2018. $3. l Supplies of $4 were counted on December 31, 2018. m. Depreciation for 2018, $2 n Accrued interest on notes payable of $1 o Wages earned but not yet paid, $3. p. Income tax for 2018 was $4 and will be paid in 2019