! Required information [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 7,000 Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Debit Cash 10,000 Accounts receivable 9,000 Supplies 4,000 Small tools 5,000 Equipment Accumulated depreciation (on equipment) Other noncurrent assets (not detailed to simplify) 7,000 Accounts payable Dividends payable Notes payable Wages payable Interest payable Income taxes payable Unearned revenue Common stock (70,000 shares, $0.10 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totale 35,000 7,000 10,000 11,000 35,000 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 $.50 market value per share at the beginning of the year. d. Earned $126,000 in revenues for 2020, including $25,000 on credit and the rest in cash. e. Incurred $26,000 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, $2,000 cash. g. Collected accounts receivable, $12,000. h. Paid accounts payable, $12,000. 1. Purchased $15,000 of supplies on account. J. Received a $8,000 deposit on work to start January 15, 2021. k. Declared a cash dividend on December 1, $17,000; paid on December 31. Data for adjusting entries: 1. Supplies of $5,000 and small tools of $6,000 were counted on December 31, 2020 (debit Miscellaneous Expenses) m. Depreciation for 2020, $4,000. n. Interest accrued on notes payable (to be computed). o. Wages earned since the December 24 payroll but not yet paid $2,000. p. Income tax expense was $4,000, payable in 2021. 1, 2, 3 and 6. Post the journal entries for transactions (a) through (k) and adjusting entries for transactions (0) through (p) to the respective T-Accounts. Cash Accounts Receivable Beg. bal. Beg. bal. End. bal. 0 End, bal 0 Supplies Small Tools Beg, bal Beg bal. End, bal, 0 End. bal. 0 Equipment Accumulated Depreciation Beg. bal. Beg, bal. End. bal. 0 End, bal. 0 Other Assets Accounts Payable Required information Other Assets Accounts Payable Beg. bal. Beg. bal. 0 End, bal. End. bal. Notes Payable Dividends Payable Beg. bal. Beg. bal. 0 End, bal. 0 End, bal Wages Payable Interest Payable Beg bal Beg. bal 0 End, bal 0 End, bal, Income Taxes Payable Unearned Revenue Beg bal. Beg, bal End, bal 0 0 End, bal Common Stock Additional Paid in Capital Bog, bal Beg bal Required information Common Stock Additional Paid-in Capital Beg. bal. Beg. bal. 0 End. bal. 0 End. bal. Retained Earnings Service Revenue Beg. bal. Beg. bal. 0 End, bal. 0 End. bal. Income Tax Expense Interest Expense Beg. bal. Beg. bal End, bal 0 End, bal. Depreciation Expense Wages Expense Beg bal. Beg, bal End. bal. End, bal. 0 Remaining Expenses Beg. bal
