Transactions during 2021 (summarized in thousands of dollars) follow:

1. Borrowed $21 cash on July 1, 2021, signing a six-month note payable.
2. Purchased equipment for $18 cash on July 2.
3. Issued additional shares of common stock on July 3 for $5.
4. Purchased additional equipment on August 4, $3 cash.
5. Purchased, on account, supplies on September 5 for future use, $10.
6. On December 6, recorded revenues in the amount of $65, including $9 on credit and $56 received in cash.
7. Paid salaries and wages expenses on December 7, $35.
8. Collected accounts receivable on December 8, $8.
9. Paid accounts payable on December 9, $11.
10. Received a $3 deposit on December 10 for work to start January 15, 2022.

Data for adjusting journal entries on December 31:

1. Amortization for 2021, $3.
2. Supplies of $4 were counted on December 31, 2021.
3. Depreciation for 2021, $2.
4. Accrued interest on notes payable of $1.
5. Salaries and wages earned but not yet paid, $3.
6. Income tax for 2021 was $4 and will be paid in 2022.

1. Prepare the closing journal entry.

Required information [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 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)