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 0 B 0 0 $30 e 15 2 $ 30 Transactions during 2021 (summarized in thousands of dollars) follow a Borrowed $15 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 $4 d. Purchased additional equipment on August 4, $4 cash. e. Received supplies on account on supplies on September 5 for future use, $9. 1. On December 6, recorded revenues in the amount of $58, including $8 on credit and $50 received in cash. g. Paid salaries and wages expenses on December 7, $25 h. Collected accounts receivable on December 8, $7 1. Paid accounts payable on December 9, $10. J. Received a $6 deposit on December 10 for work to start January 15, 2022. Data for adjusting journal entries on December 31: k. Amortization for 2021, $6. 1 Supplies of $5 were counted on December 31, 2021 m. Depreciation for 2021, $1. n. Accrued interest on notes payable of $2. o Salaries and wages earned but not yet paid, $2 p. Income tax for 2021 was $5 and will be paid in 2022 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? Req 9A Req 98 Is the company financed primarily by liabilities or stockholders' equity? Liabilities Stockholders' Equity < Prev 10 82 of 10 Next Totals 31 $30 Transactions during 2021 (summarized in thousands of dollars) follow a. Borrowed $15 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 $4. d. Purchased additional equipment on August 4, $4 cash. e. Received supplies on account on supplies on September 5 for future use, $9. On December 6, recorded revenues in the amount of $58, including $8 on credit and $50 received in cash. g. Paid salaries and wages expenses on December 7, $25. h. Collected accounts receivable on December 8, $7. Paid accounts payable on December 9, $10. J. Received a $6 deposit on December 10 for work to start January 15, 2022 Data for adjusting journal entries on December 31: k. Amortization for 2021, $6. 1. Supplies of $5 were counted on December 31, 2021. m. Depreciation for 2021, $1. n. Accrued interest on notes payable of $2 o. Salaries and wages earned but not yet paid, $2. p. Income tax for 2021 was $5 and will be paid in 2022 Required: 9-a. How much net income did Lazy Sofa Furniture, Incorporated. Jenerate during 2021? 9-b. Is the company financed primarily by liabilities or stockholders' equity? Req 9A Req 9B How much net income did Lazy Sofa Furniture, Incorporated, generate during 2021? (Enter your answer in thousands of dollars.) Net Income Req9A Req 9B > Required information [The following information applies to the questions displayed below) 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 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 Debit $5 Credit 4 3 6 se 12 6666667529 e 15 e Service Revenue Supplies Expense Depreciation Expense Salaries and Wages Expense Amortization Expense Interest Expense Income Tax Expense Totals e B e $ 38 $ 38 Transactions during 2021 (summarized in thousands of dollars) follow a. Borrowed $15 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 $4. d. Purchased additional equipment on August 4, $4 cash. e. Received supplies on account on supplies on September 5 for future use, $9. f On December 6, recorded revenues in the amount of $58, including $8 on credit and $50 received in cash g. Paid salaries and wages expenses on December 7, $25. h. Collected accounts receivable on December 8, $7. Paid accounts payable on December 9, $10. J. Received a $6 deposit on December 10 for work to start January 15, 2022 Data for adjusting journal entries on December 31: 9 10 Next