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COMP4-2 (Static) Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratlo Analysis LO4-1, 4-2, 4-3, 4-4 (IRT) [The following information applies to the questions displayed below.) 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: Credit Debit 5,000 4,600 2,000 6,000 9,000 7, eee Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Cash Accounts receivable Supplies Small tools Equipment Accumulated depreciation (on equipment) other assets (not detailed to simplify) Accounts payable Dividends payable Notes payable Wages payable Interest payable Income taxes payable Unearned revenue Common stock (60, eee shares, $0.10 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses Totals 6, eee 9, eee 4, eee 26,000 26, eee Transactions during 2020 follow: a. Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable. b. Purchased equipment for $18,000 cash on July 1, 2020. c. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year. d. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash. e. Incurred $27,000 In wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest pald with cash. Note: Wages are paid in cash. f. Purchased additional small tools, $3,000 cash. g. Collected accounts receivable, $8,000. h. Pald accounts payable, $11,000. 1. Purchased $10,000 of supplies on account. J. Received a $3,000 deposit on work to start January 15, 2021. k. Declared a cash dividend on December 1, $10,000; paid on December 31. Data for adjusting entries: 1. Supplies of $4,000 and small tools of $8,000 were counted on December 31, 2020 (debit Miscellaneous Expenses). m. Depreciation for 2020, $2,000. Transactions during 2020 follow: a. Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable. b. Purchased equipment for $18,000 cash on July 1, 2020. c. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year. d. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash. e. Incurred $27,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest paid with cash. Note: Wages are paid in cash. f. Purchased additional small tools, $3,000 cash. g. Collected accounts receivable, $8,000. h. Pald accounts payable, $11,000. 1. Purchased $10,000 of supplies on account. J. Received a $3,000 deposit on work to start January 15, 2021. k. Declared a cash dividend on December 1, $10,000; paid on December 31. Data for adjusting entries: 1. Supplies of $4,000 and small tools of $8,000 were counted on December 31, 2020 (debit Miscellaneous Expenses). m. Depreciation for 2020, $2,000. n. Interest accrued on notes payable to be computed). o. Wages earned since the December 24 payroll but not yet pald, $3,000. p. Income tax expense was $4,000, payable in 2021. Beg bal Accounts Receivable 4,000 14,000 8,000 (d) (g) Beg. bal (a) (c) (d) Cash 5,000 20,000 5,000 56,000 8,000 3,000 (b) () 18,000 28,000 3,000 11,000 10,000 e End bal 10,000 (h) (51) 0 End, bal 27,000 Beg. bal. 0 Supplies 2,000 10,000 Beg. bal 0 Small Tools 6,000 3,000 1,000 8,000 (0) > 0 End. bal. 4,000 End. bal 8,000 Equipment Beg bal. Beg. bal Accumulated Depreciation 0 2,000 (b) 18,000 (m) End. bal. 18,000 End, bal 2,000 Other Assets 9,000 Beg. bal. Beg bal. (h) Accounts Payable 7,000 11,000 7.000 10,000 13,000 0 > End, bal. 9,000 End. bal. Dividends Payable Beg. bal. Notes Payable 0 20,000 Beg. bal. (a) End, bal. 20,000 End. bal Beg. bal Wages Payable 0 3,000 Beg, bal Interest Payable 0 1,000 (0) (n) End, bal 3,000 End. bal. 1,000 Unearned Revenue Beg. bal Income Taxes Payable 0 4,000 Beg, bal (9) End. bal. 4,000 End, bal. 0 Beg. bal Common Stock 6,000 1,000 Beg. bal. Additional Paid-in Capital 9,000 4,000 (c) (c) End, bal. 7,000 End bal. 13,000 Service Revenue Retained Earnings 4,000 10,000 Beg. bal. (k1) Beg. bal. % 70,000 (d) End. bal. 14,000 End. bal. 70,000 Service Revenue Beg. bal. Retained Earnings 4,000 10,000 Beg. bal. (k1) 70,000 (d) End bal. 14,000 End. bal 70,000 Beg bal Income Tax Expense 0 4,000 Beg. bal. (n) Interest Expense 0 1,000 End, bal 4,000 End. bal. 1,000 Beg. bal. (m) Depreciation Expense 0 2,000 Beg. bal. (0) Wages Expense 0 3,000 x End, bal. 2,000 End. bal 3,000 Beg. bal. Miscellaneous expenses 0 35,000 9,000 e D 0 X End, bal 44,000 * Red text indicates no response was expected in a cell or a formula base