Question

prepare income statement, prepare statement for returned earnings, prepare a balance sheet. Financial Accounting

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, Inc.) on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (amounts are rounded to thousands of dollars to simplify Recount Titles Debit Credit A Recounts Receivable Supplies Equipment Mecumulated Depreciation Software lated Amortization Accounts Payable Notes Payable long-term) Salaries and Wages Payable Interest Payable Income Tax Payabia Deferred Revenue Retained Earnings prontlompen Salaries and wages Expense Amortization Expense Interest Expense Income Tax Expense

Answer 1

Lazy Sofa Furniture Inc. Journal entries No. Acccount Debit Cash Notes Payable (short-term) Credit Calculation 30 30 b Equipment Cash 14 Cash Common stock d Equipment Cash 3 Supplies Accounts Payable Cash Accounts Receivable Service revenue 44 Salaries & Wages expense Cash Cash Accounts Receivable CO Accounts Payable Cash Cash Deferred Revenue Adjusting JES k Amortisation expenses Accumulated Amortisation =2+10-4 Supplies expense Supplies m Depreciation expense Accumulated Depreciation Interest expense Interest Payable Salaries & Wages expense Salaries & Wages Payable p 74 Income tax expense Income Tax Payable Closing JES Service revenue Salaries & Wages expense Supplies expense Depreciation expense Amortisation expenses Interest expense Income tax expense Retained Earnings

Date Ref Date Debit Credit Ref Date Debit Credit Ref Accounts Receivable Beg bal $ 4 $ 9 $ 8 h Beg bal Debit Credit Supplies $ 2 $ 10 $ 8 f End Bal. $ End Bal. $ 5 Accum. Depr. - Equipment Beg bal $ - $ 2 m 4 Software 12 Beg bal $ Accum. Amortisation - Software Beg bal $ 2 $ 2 k Lazy Sofa Furniture Inc. T Accounts Date Debit Credit Ref Cash Beg bal $ 5 $ 30 $ 14 b $ 5 $ 3d $ 65 $ 44 g $ 8 $ 11 i $ 2 End Bal. $ 43 Equipment Beg bal $ 6 $ 14 d $ 3 End Bal. $ 23 Accounts Payable Beg bal $ 7 $ 11 $ 10 e End Bal. $ 6 Income Tax Payable Beg bal $ . $ 2 p End Bal. $ 2 Service revenue $ 74 f 1 $ 74 End Bal. $ - Income tax expense $ 2 $ 2 End Bal. $ . End Bal. $ 2 Notes Payable (short-term) Beg bal $ - $ 30 a End Bal. $ 30 Deferred Revenue Beg bal $ - $ 2 i End Bal. 2 Salaries & Wages expense $ 44 $ 3 $ 47 End Bal. $ - Interest expense $ 2 $ 2 End Bal. $ . End Bal. $ 12 Salaries & Wages Payable Beg bal $ - $ 3 0 End Bal. $ 3 Common Stock Beg bal $ 15 $ 5 C End Bal. $ 20 Depreciation expense m $ 2 $ 2 End Bal. $ Supplies expense 1 $ 8 $ 8 End Bal. $ - End Bal. $ 4 Interest Payable Beg bal $ - $ 2n End Bal. $ 2 Retained Earnings Beg bal $ 5 $ 11 1 End Bal. $ 16 Amortisation expenses k $ 2 $ 2 1 End Bal. $ - 1 1 p 1 1

Adjusted TB Debit Credit Lazy Sofa Furniture Inc. Account Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortisation Accounts Payable Notes Payable (short-term) Salaries & Wages Payable Interest Payable Income Tax Payable Deferred Revenue Common stock Retained Earnings Service revenue Salaries & Wages expense Depreciation expense Amortisation expenses Income tax expense Interest expense Supplies expense Totals CONNNN 150 150

Lazy Sofa Furniture Inc. Income Statement For the Year Ended December 31, 2018 Service revenue Expenses Salaries & Wages expense Supplies expense Depreciation expense Amortisation expenses Interest expense Income tax expense Total Expenses Net income Statement of Retained Earnings For the Year Ended December 31, 2018 Balance, January 1, 2018 Net Profit Balance, December 31, 2018 16

Lazy Sofa Furniture Inc. Balance Sheet As of December 31, 2018 Assets Current Assets Cash Accounts Receivable Supplies Total Current Assets Liabilities Current Liabilities Accounts Payable Notes Payable (short-term) Salaries & Wages Payable 52 Interest Payable Income Tax Payable Deferred Revenue Total Current Liabilities 45 (2) Fixed Assets Equipment Accumulated Depreciation Equipment, Net Software Accumulated Amortisation Software, Net Total Fixed Assets 21 Stockholders Equity Common Stock Retained earnings 8 Total Stockholders Equity 36 29 Total Assets 81 Total Liabilities & Stockholders Equity 81