1 C4-3 Recording Transactions (Including Adjusting Journal Entries), Preparing Financial Statements and Closing Journal Entries, and Computing Net Profit Margin and Current Ratio (Chapters 2, 3, and 4) (LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, L 100 points Skipped Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, was as follows the amounts are rounded to thousands of dollars to simplify): Debit Credit eBook 4 4 9 $ 2 Print 5 2 5 fo References 6 Account Titles Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Service Revenue Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense Totals 14 7 0 0 0 $30 $38 Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $18 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $21 cash on July 2, 2018. C. Issued additional shares of common stock for $4 on July 3. d. Purchased software on July 4, $4 cash. 1 1 d. Purchased software on July 4, $4 cash. e Purchased supplies on July 5 on account for future use. $6. 1. Recorded revenues on December 6 of $53, including $10 on credit and $43 received in cash. g. Recognized salaries and wages expense on December 7 of $26; paid in cash. h. Collected accounts receivable on December 8, $7. i. Paid accounts payable on December 9, $8. j. Received a $4 cash deposit on December 10 from a hospital for a contract to start January 5, 2019. 100 points Skipped Data for adjusting journal entries on December 31: eBook k. Amortization for 2018, $2. 1. Supplies of $4 were counted on December 31, 2018. m. Depreciation for 2018, $2. 11. Accrued interest of $1 on notes payable. o. Salaries and wages incurred but not yet paid or recorded, $4. p. Income tax expense for 2018 was $5 and will be paid in 2019. Print References (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis General Journal tab - Prepare the journal entries to record the transactions (a) through (). Review the accounts as shown in the General Ledger and Trial Balance tabs. Then prepare the necessary adjusting entries (k) through (p) to correctly report net income for the period. Then record the closing entry as of December 31. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances in the General Ledger, Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the drop-down. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account based on your selection. Statement of Retained Earnings tab - Prepare the statement of retained earnings for the year ended December 31, 2018. Balance Sheet tab - Use the drop-down to select the accounts to properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Analysis tab - Using the Information from the requirements above, complete the 'Analysis' tab