Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $18 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $21 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. Purchased, on account, supplies on September 5 for future use, $9. f. On December 6 , recorded revenues in the amont of $61, including $8 on credit and $53 received in cash. 9. Paid salaries and wages expenses on December 7,$22. h. Collected accounts receivable on December 8,$7. 1. Paid accounts payable on December 9,$10. f. Recelved a $5 deposit on December 10 for work to start January 15, 2022. Data for adjusting journal entries on December 31 : k. Amortization for 2021, $5. 1. Supplies of $5 were counted on December 31,2021 . m. Depreciation for 2021,$1. n. Accrued interest on notes payable of $3. o. Salaries and wages earned but not yet paid, $2. p. Income tax for 2021 was $6 and will be paid in 2022 . Required: 8. Prepare a post-closing trial balance. (Enter your answers in thousands of dollars.) Required: 9-a. How much net income did Lazy Sofa Furniture, Incorporated, generate during 2021? 9-b. Is the company financed primarily by liabilities or stockholders' equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What has been your desire for leadership in CVS Health?

Answered: 1 week ago

Question

Question 5) Let n = N and Y Answered: 1 week ago

Answered: 1 week ago