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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 44, LO 45, LO 46] [The following information applies to the questions displayed below] Alison and Chuck Renny began operations of their fuiniture repair shop (Lazy Sofa Fumitufe, Incorporated) on January 1. 2020. The annual reporting perlod ends December 31 . The trial balance on January 1, 2021, follows (amounts are rounded to thousands of dollars to simplify). Transactions during 2021 (summarized in thousands of dollats) foltow: 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. c. Issued additional shares of common stock on July 3 for $6. d. Purchased additional equipment on August 4, $2 cash. e. Received supplies on account on supplies on September 5 for future use, $8. f. On December 6, recorded revenues in the amount of $56, including $7 on crecit and $49 recelved in cash. g. Paid salaries and wages expenses on December 7,$26. h. Collected accounts recelvable on December 8,$9 1. Pald accounts payable on December 9,$12 1. Recelved a $5 deposit on December 10 for work to start January 15, 2022. Data for adjusting journal entries on December 31: k. Amortization for 2021,$5. 1. Supplies of $6 were counted on December 31, 2021 m. Depreciation for 2021, $3. n. Accrued interest on notes payable of $1. a. Salaries and wages eamed but not yet pald, \$4. p. Income tax for 2021 was $6 and wili be paid in 2022 C4-4 (Algo) T accounts Required: Toccounts. Fnter begining balances and post joumal entries from Part 2, the adjusting journat entries from Part 4, and the closing entry from Part 7 . (Enter your onswers in thousands of dollars.)

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