Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Inc.) on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (amounts are rounded to thousands of dollars to simplify). Debit Credit $ 5 4 2 6 12 4 7 @ a 3 Account Titles 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 Totals 2 15 3 3 2 $29 $ 29 Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on July 1, 2018, 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. Purchased, on account, supplies on September 5 for future use, $10. 1. 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. i. Paid accounts payable on December 9, $11. j. Received a $4 deposit on December 10 for work to start January 15, 2019. Data for adjusting journal entries on December 31: k. Amortization for 2018, $4. 1. Supplies of $4 were counted on December 31, 2018. m. Depreciation for 2018, $2. n. Accrued interest on notes payable of $3. o. Wages earned but not yet paid, $3. p. Income tax for 2018 was $5 and will be paid in 2019. Required: 2. Record journal entries for transactions (a) through ). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account fleld. Enter your answers in thousands of dollars.) Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal. Supplies Equipment Beg. Bal. Beg. Bal End. Bal. End. Bal. Accumulated Depreciation Software Beg. Bal Beg. Bal. End. Bal. End. Bal Accumulated Amortization Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal Notes Payable (short-term) Salaries and Wages Payable Beg. Bal Beg. Bal. End. Bal End. Bal Interest Payable Income Tax Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Deferred Revenue Common Stock Beg. Bal Beg. Bal. End. Ball End. Bal. Retained Earnings Service Revenue Beg. Bal. Beg. Bal End. Bal End. Bal. Income Tax Expense Interest Expense Beg. Bal Beg. Bal. End. Bal End. Bal. Depreciation Expense Supplies Expenses Beg. Bal Beg. Bal. End. Bal. End. Bal. Salaries and Wages Expense Amortization Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. LAZY SOFA FURNITURE, INC. Unadjusted Trial Balance (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 Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Totals k. Amortization for 2018, $4. 1. Supplies of $4 were counted on December 31, 2018. m. Depreciation for 2018, $2. n. Accrued interest on notes payable of $3. o. Wages earned but not yet paid, $3. p. Income tax for 2018 was $5 and will be paid in 2019. 4. Record adjusting journal entries (k) through (p). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands of dollars.) View transaction list Journal entry worksheet Record the adjusting entry for amortization. Note: Enter debits before credits. Transaction General Journal Debit Credit k. Record entry Clear entry View general journal Req 6A Req 6B Req 6C Prepare an income statement. LAZY SOFA FURNITURE, INC. Income Statement (in thousands) Req 6A Req 6B Req 6C Prepare an income statement. LAZY SOFA FURNITURE, INC. Income Statement (in thousands) Prepare statement of retained earnings. LAZY SOFA FURNITURE, INC. Statement of Retained Earnings (in thousands) Balance, January 1, 2018 Balance, December 31, 2018 Req 6A Req 6B Req 6C Prepare a balance sheet. (Amounts to be deducted should be indicated by a minus sign.) LAZY SOFA FURNITURE, INC. Balance Sheet (in thousands) 0 0 Equipment 0 Software 0 0 $ 0 $ 0 9-a. How much net income did Lazy Sofa Furniture, Inc., generate during 2018? (Enter your answer in thousands of dollars.) Net Income 9-b. Is the company financed primarily by liabilities or stockholders' equity? O Liabilities Stockholders' Equity
