Josh and Kelly McKay began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2017, was as follows:

Account Titles	Debit				Credit
Cash		7,000
Accounts receivable		6,000
Supplies		8,000
Small tools		8,000
Equipment
Accumulated depreciation (on equipment)
Other assets (not detailed to simplify)		10,000
Accounts payable						8,000
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						8,000
Retained earnings						17,000
Service revenue
Depreciation expense
Wages expense
Interest expense
Income tax expense
Remaining expenses (not detailed to simplify)
Totals		39,000				39,000

Transactions during 2017 follow:

Borrowed $40,000 cash on July 1, 2017, signing a one-year, 10 percent note payable.

Purchased equipment for $21,000 cash on July 1, 2017.

Sold 20,000 additional shares on January 1, 2017, of capital stock for cash at $.50 market value per share at the beginning of the year.

Earned $164,000 in revenue. Transactions dated August 15, 2017, including $65,000 on credit and the rest in cash.

Incurred remaining expenses of $56,000, invoices dated September 15, 2017 including $12,000 on credit and the rest paid in cash.

Purchased additional small tools on September 23, 2017, $7,000 cash.

Collected accounts receivables on October 6, 2017, $7,000.

Paid accounts payable on November 11, 2017, $19,000.

Purchased $26,000 of supplies on account on November 30, 2017.

Received a $5,000 deposit on December 2, 2017, for work to start January 15, 2018.

Declared and paid cash dividends on December 17th, $17,000.

Data for adjusting entries:

Supplies of $4,000 and small tools of $5,000 were counted on December 31, 2017 (debit Remaining Expenses).

Depreciation for 2017, $5,000.

Interest accrued on notes payable (to be computed).

Wages earned since the December 24 payroll but not yet paid, $8,000.

Income tax expense was $8,000, payable in 2018.

General ournal General Trial Balance Statement Ledger Income Statement Balance St of cash Requirement of SE Sheet flows General Journal tab (Step 1) Prepare the journal entries to record the transactions (1) through (11). Review the accounts as shown in the General Ledger and Trial Balance tabs (Step 2) Prepare the necessary adjusting entries (12) through (16) to correctly report net income for the period (Step 3) After preparing the financial statements, record the closing entry (17). Notice the effect on the trial balance, income statement, and balance sheet tabs once the closing entry is posted General Ledger tab Each journal entry is posted automatically to the General Ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances in the General Ledger Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the drop down. Your choice will determine the reported values on the financial statement tabs Income Statement tab Use the drop-downs to select the accounts that should be properly included on the Income Statement. Compute earnings per share. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection Statement of Stockholders' Equity tab- Use the drop-downs to select the accounts that should be properly included on the Statement of Stockholders' Equity and enter the appropriate amounts Balance Sheet tab- Use the drop-downs to select the accounts that should be properly included on the Balance Sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Statement of Cash Flows tab- For each transaction, identify the appropriate cash flow classification (if any) and the transaction's impact on cash Analysis tab - Calculate the current ratio, total asset turnover ratio, and net profit margin ratio for 2017