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). 

 

Account Titles	Debit	Credit
Cash	$ 6
Accounts Receivable	3
Supplies	1
Equipment	5
Accumulated Depreciation		$ 0
Software	10
Accumulated Amortization		5
Accounts Payable		6
Notes Payable (short-term)		0
Salaries and Wages Payable		0
Interest Payable		0
Income Tax Payable		0
Deferred Revenue		0
Common Stock		11
Retained Earnings		3
Service Revenue		0
Supplies Expense	0
Depreciation Expense	0
Salaries and Wages Expense	0
Amortization Expense	0
Interest Expense	0
Income Tax Expense	0
Totals	$ 25	$ 25

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

2. Borrowed $20 cash on July 1, 2021, signing a six-month note payable.
4. Purchased equipment for $19 cash on July 2.
6. Issued additional shares of common stock on July 3 for $6.
8. Purchased additional equipment on August 4, $2 cash.
10. Received supplies on account on supplies on September 5 for future use, $8.
12. On December 6, recorded revenues in the amount of $62, including $7 on credit and $55 received in cash.
14. Paid salaries and wages expenses on December 7, $20.
16. Collected accounts receivable on December 8, $9.
18. Paid accounts payable on December 9, $12.
20. Received a $5 deposit on December 10 for work to start January 15, 2022.

Data for adjusting journal entries on December 31:

2. Amortization for 2021, $5.
4. Supplies of $6 were counted on December 31, 2021.
6. Depreciation for 2021, $3.
8. Accrued interest on notes payable of $4.
10. Salaries and wages earned but not yet paid, $4.
12. Income tax for 2021 was $7 and will be paid in 2022.

Required:

1. Record journal entries for transactions (a) through (j). (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.)

Answer rating: 100% (QA)

Here are the journal entries for transactions a through j a July 1 2021 Debit Cash 20 Credit Notes P... View the full answer