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Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Incorporated) on January 1 , 2020. The annual reporting period ends
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). Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $27 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $17 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. f. On December 6 , recorded revenues in the amount of $71, including $9 on credit and $62 received in cash. g. Paid salaries and wages expenses on December 7,$41. h. Collected accounts receivable on December 8,$8. i. Paid accounts payable on December 9,$11. j. Received a $2 deposit on December 10 for work to start January 15, 2022. Data for adjusting journal entries on December 31 : k. Amortization for 2021, $2. 1. Supplies of $4 were counted on December 31,2021 . m. Depreciation for 2021, $2. n. Accrued interest on notes payable of $1. o. Salaries and wages earned but not yet paid, $3. p. Income tax for 2021 was $4 and will be paid in 2022 . 5. Prepare an adjusted trial balance. (Enter your answers ln thousands of dollers.) 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). Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $27 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $17 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. f. On December 6 , recorded revenues in the amount of $71, including $9 on credit and $62 received in cash. g. Paid salaries and wages expenses on December 7,$41. h. Collected accounts receivable on December 8,$8. i. Paid accounts payable on December 9,$11. j. Received a $2 deposit on December 10 for work to start January 15, 2022. Data for adjusting journal entries on December 31 : k. Amortization for 2021, $2. 1. Supplies of $4 were counted on December 31,2021 . m. Depreciation for 2021, $2. n. Accrued interest on notes payable of $1. o. Salaries and wages earned but not yet paid, $3. p. Income tax for 2021 was $4 and will be paid in 2022 . 5. Prepare an adjusted trial balance. (Enter your answers ln thousands of dollers.)
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