100 points 1 eBook 14 Pri References C4-3 (Algo) Recording Transactions (Including Adjusting Entries), Preparing Financial Statements and 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 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-tern) Salaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue Common Stock Retained Bervice Revenue Depreciation Expense Amortization Expeae Debit Credit 8.7 Salaries and Mages Expense Supplies Expense Interest Expense Income Tax Expense Totals 27 $27 Transections 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 commn 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: k. Amortization for 2021, $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. (.e., $100,000 should be entered as $100).) (Enter all of your answers in thousands of dollars. (l.e., $100,000 should be entered as $100).) Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis Calculate the Net Pofit Margin and Current Ratio. Net income can be found on Income statement tab. (Hint: Select Adjusted on the dropdown.) How much net income did Northland Physical Therapy, generate during 2021? What was its net profit margin? Round "Net Profit Margin" to 1 decimal place) Net Income Net Profit Margin % is the business financed primarily by liabilities or stockholders' equity? What is the current ratio? (Round your answer to 2 decimal places) Current Ratio (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, 2021. 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. Requirement General Journal >