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Required information Skip to question [ The following information applies to the questions displayed below. ] Alison and Chuck Renny began operations of their furniture
Required information
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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 The annual reporting period ends December The trial balance on January follows amounts are rounded to thousands of dollars to simplify
Account Titles Debit Credit
Cash $
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation $
Software
Accumulated Amortization
Accounts Payable
Notes Payable shortterm
Salaries and Wages Payable
Interest Payable
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 $ $
Transactions during summarized in thousands of dollars follow:
Borrowed $ cash on July signing a sixmonth note payable.
Purchased equipment for $ cash on July
Issued additional shares of common stock on July for $
Purchased additional equipment on August $ cash.
Received supplies on account on supplies on September for future use, $
On December recorded revenues in the amount of $ including $ on credit and $ received in cash.
Paid salaries and wages expenses on December $
Collected accounts receivable on December $
Paid accounts payable on December $
Received a $ deposit on December for work to start January
Data for adjusting journal entries on December :
Amortization for $
Supplies of $ were counted on December
Depreciation for $
Accrued interest on notes payable of $
Salaries and wages earned but not yet paid, $
Income tax for was $ and will be paid in
Required:
a How much net income did Lazy Sofa Furniture, Incorporated, generate during
b Is the company financed primarily by liabilities or stockholders equity?
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