Aubrae and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows:

Furniture Refinishers, Inc.
Trial Balance on January 1, 2020
Account Titles	Debit				Credit
Cash		9,000
Accounts receivable		8,000
Supplies		3,000
Small tools		12,000
Equipment
Accumulated depreciation (on equipment)
Other noncurrent assets (not detailed to simplify)		6,000
Accounts payable						6,000
Dividends payable
Notes payable
Wages payable
Interest payable
Income taxes payable
Unearned revenue
Common stock (60,000 shares, $0.10 par value)						6,000
Additional paid-in capital						9,000
Retained earnings						17,000
Service revenue
Depreciation expense
Wages expense
Interest expense
Income tax expense
Miscellaneous expenses (not detailed to simplify)
Totals		38,000				38,000

Transactions during 2020 follow:

1. Borrowed $40,000 cash on July 1, 2020, signing a one-year, 10 percent note payable.
2. Purchased equipment for $17,000 cash on July 1, 2020.
3. Sold 30,000 additional shares on January 1, 2020, of capital stock for cash at $.50 market value per share at the beginning of the year.
4. Earned $118,000 in revenues. Transactions dated August 15, 2020, including $24,000 on credit and the rest in cash.
5. Incurred $24,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $6,000 on credit and the rest paid with cash.
6. Purchased additional small tools on September 23, 2020, $7,000 cash.
7. Collected accounts receivable on October 6, 2020, $11,000.
8. Paid accounts payable on November 11, 2020, $15,000.
9. Purchased $14,000 of supplies on account on November 30, 2020.
10. Received a $7,000 deposit on work to start January 15, 2021.
11. Declared a cash dividend on December 1, $16,000; paid on December 31.

Data for adjusting entries:

12. Supplies of $4,000 and small tools of $13,000 were counted on December 31, 2020 (debit Miscellaneous Expenses).
13. Depreciation for 2020, $3,000.
14. Interest accrued on notes payable (to be computed).
15. Wages earned since the December 24 payroll but not yet paid, $9,000.
16. Income tax expense was $3,000, payable in 2021.
17. Record closing entry