on Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sota Furniture, Inc.) on January 1, 2008. The annual reporting period ends December 31. The trial balance January 1, 2009, was as follows (the amounts are rounded to thousands of dollars to simplify): Debit Credit Account Titles $ 5 4 2 6 0 $ 0 9 7 0 0 0 Cash Accounts Receivable Supplies Small Tools Equipment Accumulated Depreciation Other Assets Accounts Payable Notes Payable Wages Payable Interest Payable Income Tax Payable Unearned Revenue Contributed Capital Retained Earnings Dividends Declared Service Revenue Depreciation Expense Income Tax Expense Interest Expense Operating Expenses Totals 0 0 15 4 0 0 0 0 0 0 $26 $26 a. b. c. d. Transactions during 2009 (summarized in thousands of dollars) follow: Borrowed $21 cash on July 1, 2009, signing a six-month note payable. Purchased equipment for $18 cash on July 1, 2009. Issued additional shares of stock for $5. Earned revenues for 2009 in the amount of $65, including $9 on credit and $56 received in cash. Recognized operating expenses for 2009, $35, including $7 on credit and $28 in cash. f. Purchased additional small tools, $3 cash. e. Collected accounts receivable, $8. h. Paid accounts payable, $11. i. Purchased on account supplies for future use, $10. j. Received a $3 deposit on work to start January 15, 2010. k. Declared and paid a cash dividend, $10. Data for adjusting journal entries: 1. Supplies of $4 were counted on December 31, 2009. m. Depreciation for 2009, $2. Accrued interest on notes payable of $1. Wages earned since the December 24 payroll not yet paid, $3. p. Income tax for 2009 was $4, and will be paid in 2010. n. 0. Required: 1. Set up T-accounts for the accounts on the trial balance and enter beginning balances. 2. Record journal entries for transactions (a) through (k), and post them to the T-accounts. 3. Prepare an unadjusted trial balance. 4. Record and post the adjusting journal entries (l) through (p). 5. Prepare an adjusted trial balance. 6. Prepare an income statement, statement of retained earnings, and balance sheet. 7. Prepare and post the closing journal entries. 8. Prepare a post-closing trial balance. 9. How much net income did Lazy Sofa Furniture, Inc., generate during 2009? Is the company financed primarily by liabilities or stockholders' equity