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 Debit Credit $ 5 4 3 6 12 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 Expense Depreciation Expense Salaries and Wages Expense Amortization Expense Interest Expense Income Tax Expense Totals 7 15 5 0 0 $ 30 $ 30 Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $28 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $16 cash on July 2. c. Issued additional shares of common stock on July 3 for $4. d. Purchased additional equipment on August 4, $4 cash. e. Received supplies on account on supplies on September 5 for future use, $9. f. On December 6, recorded revenues in the amount of $71, including $8 on credit and $63 received in cash. g. Paid salaries and wages expenses on December 7, $42. h. Collected accounts receivable on December 8, $7. 1. Paid accounts payable on December 9, $10. J. Received a $3 deposit on December 10 for work to start January 15, 2022. Data for adjusting journal entries on December 31: k. Amortization for 2021, $3. 1. Supplies of $5 were counted on December 31, 2021. m. Depreciation for 2021, $1. n. Accrued interest on notes payable of $1. o. Salaries and wages earned but not yet paid, $2. p. Income tax for 2021 was $3 and will be paid in 2022. 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 Cash Debit Credit Accounts Receivable Supplies Equipment Accumulated Depreciation Software Majas at Dalance (in thousands) Account Titles Debit Credit 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 Service Revenue Supplies Expenses Salaries and Wages Expenses Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Totals S C Req 6A Req 6B Req 6C Prepare an income statement. (Enter your answers in thousands of dollars. LAZY SOFA FURNITURE, INCORPORATED Income Statement (in thousands) 0 0 Req 6A Req 6B Req 6C Prepare statement of retained earnings. (Enter your answers in thousands of dollars.) LAZY SOFA FURNITURE, INCORPORATED Statement of Retained Earnings (in thousands) Balance, January 1, 2021 Balance, December 31, 2021 $ 0 Equipment LAZY SOFA FURNITURE, INCORPORATED Balance Sheet (in thousands) 0 0 Software 0 0 $ 0 0 Journal entry worksheet < Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transaction A General Journal Debit Credit Record entry Clear entry View general journal