1 ipped Closing Entries, General Ledger 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 Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, was as follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Book Print rences Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Nages Payable Interest Payable Income Taxes Payable Retained Earnings Deferred Revenue Common Stock Depreciation Expense Service Revenue Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense Totals Debit Credit 87 3. 3 9 1 5 0 0 15 5 0 0 0 $ 27 $27 Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $17 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $20 cash on July 2, 2021. c. Issued additional shares of common stock for $5 on July 3. d. Purchased software on July 4, $3 cash. e. Purchased supplies on July 5 on account for future use, $7. Recorded revenues on December 6 of $50, including $8 on credit and $42 received in cash. g. Recognized salaries and wages expense on December 7 of $25; paid in cash. h. Collected accounts receivable on December 8, $9, Paid accounts payable on December 9, $10. Received a $3 cash deposit on December 10 from a hospital for a contract to start January 5, 2022. Data for adjusting journal entries on December 31:1 k. Amortization for 2021, $1. 1. Supplies of $3 were counted on December 31, 2021. m. Depreciation for 2021, $4. n. Accrued interest of $1 on notes payable. a. Salaries and wages incurred but not yet paid or recorded. $4. p. Income tax expense for 2021 was $4 and will be paid in 2022. (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) General Requirement Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis Prepare the statement of retained earnings for the year ended December 31, 2021. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. Unadjusted NORTHLAND PHYSICAL THERAPY Statement of Retained Earnings For the Year Ended December 31, 2021 (in thousands) Balance, January 1, 2021 0 Balance, December 31, 2021 0