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	Debit	Credit
Cash	$ 5
Accounts Receivable	4
Supplies	2
Equipment	6
Accumulated Depreciation		$ 0
Software	12
Accumulated Amortization		3
Accounts Payable		7
Notes Payable (short-term)		0
Salaries and Wages Payable		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
Totals	$ 29	$ 29

Transactions during 2021 (summarized in thousands of dollars) follow:

Borrowed $21 cash on July 1, 2021, signing a six-month note payable.

Purchased equipment for $18 cash on July 2.

Issued additional shares of common stock on July 3 for $5.

Purchased additional equipment on August 4, $3 cash.

Purchased, on account, supplies on September 5 for future use, $10.

On December 6, recorded revenues in the amount of $65, including $9 on credit and $56 received in cash.

Paid salaries and wages expenses on December 7, $35.

Collected accounts receivable on December 8, $8.

Paid accounts payable on December 9, $11.

Received a $3 deposit on December 10 for work to start January 15, 2022.

Data for adjusting journal entries on December 31:

Amortization for 2021, $3.

Supplies of $4 were counted on December 31, 2021.

Depreciation for 2021, $2.

Accrued interest on notes payable of $1.

Salaries and wages earned but not yet paid, $3.

Income tax for 2021 was $4 and will be paid in 2022. 1. Prepare an unadjusted trial balance. 2. Record adjusting journal entries (k) through (p). 3. Prepare an adjusted trial balance. 4a. Prepare an income statement. 4b. Prepare a statement of retained earnings. 4c. Prepare a balance sheet. 5.Prepare the closing journal entry. 6. Enter beginning balances and post journal entries, the adjusting journal entries and the closing entry to create T Accounts 7.Prepare a post-closing trial balance. 8a.How much net income did Lazy Sofa Furniture, Incorporated, generate during 2021? 8b.Is the company financed primarily by liabilities or stockholders equity?