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Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Incorporated) on January 1 2020. The annual reporting period ends December 31 . The trial balance on January 1, 2021, follows (amounts are rounded to thousands of dollars to simplify). ansactions during 2021 (summarized in thousands of dollars) follow: a Borrowed $28 cash on July 1,2021, signing a six-month note payable. b. Purchased equipment for $16 cash on July 2 . c. Issued additional shares of common stock on July 3 for $4. d. Purchased additional equipment on August 4, $4 cash. e. Received supplies on account on supplies on September 5 for future use, $9. t On December 6 , recorded revenues in the amount of $71, including $8 on credit and $63 received in cash. g. Paid salaries and wages expenses on December 7,$42. h. Collected accounts receivable on Decomber 8,$7. 1. Paid accounts payable on December 9,$10. j. Received a $3 deposit on December 10 for work to start January 15,2022. Data for adjusting journal entries on December 31 : k. Amortization for 2021,$3. 1. Supplies of $5 were counted on December 31, 2021 m. Depreciation for 2021, $1 n. Accrued interest on notes payable of $1. o. Solaries and wages earned but not yet paid, $2 p. Income tax for 2021 was $3 and will be pad in 2022 Record adjusting journal entries ( k ) through ( p ). (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Enter your answers in thousands of dollars.) Journal entry worksheet 23456 Amortizotion for 2021, \$3. Pecord the adjusting entry. Hote: thiter sebits seffire oredith. Prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) Required: 6-a. Prepare an income statement. 6-b. Prepare statement of retained earnings. 6-c. Prepare a balance sheet. Complete this question by entering your answers in the tabs below. Prepare an income statement. (Enter your answers in thousands of dollars.) 7. Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) Journal entry worksheet Record entry to close revenue and expense accounts to retained earnings: Wolni Inter dobis before credic. T accounts. Enter beginning balances and post journal entries from Part 2, the adjusting journal entries from Part 4 , and the closing entry from Part 7. (Enter your answers in thousands of dollars.) 8. Prepare a post-closing trial balance. (Enter your answers in thousands of dollars Required: 9-a. How much net income did Lazy Sofa Furniture, Incorporated, generate during 2021? 9-b. Is the company financed primarily by liabilities or stockholders' equity? How much net income did Lazy Sofa Furniture, Incorporated, generate during 2021 ? (Enter your answer in thousands dollars.)
