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Required information C4-4 (Algo) From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, LO 4-5, LO 4-6] [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. Journal entry worksheet Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $14 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $16 cash on July 2 . cissued additional shares of common stock on July 3 for $6. d. Purchased additional equipment on August 4. $2 cash. e. Recelved supplies on account on supplies on September 5 for future use, $8. t On December 6 , recorded revenues in the amount of $56, including $7 on credit and $49 recelved in cash. g. Paid salaries and wages expenses on December 7,$26. h. Collected accounts recelvable on December 8,$9 LPaid accounts payable on December 9,$12 f. Recelved a $5 deposit on December 10 for work to start January 15,2022 Data for adjusting joumal entries on December 31: k. Amortization for 2021, \$5. i Supplles of $6 were counted on December 31, 2021. m. Depreclition for 2021, $3. n. Accrued interest on notes payable of $1 Silaries and wages earned but not yet paid, $4. p. Income tax for 2021 was $6 and will be paid in 202

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