5.

Adjusted Trial Balance (in thousands )
	Debit	Credit
Cash	$ 25.00
Accounts Receivable	$ 3.00
Supplies	$ 2.00
Equipment	$ 42.00
Accumulated Depreciation		$ 4.00
Software	$ 8.00
Accumulated Amortization		$ 2.00
Accounts Payable		$ 3.00
Notes Payable (Short term)		$ 29.00
Salaries and wages payable		$ 4.00
Interest Payable		$ 1.00
Income taxes Payable		$ 3.00
Unearned revenue		$ 2.00
Common Stock		$ 22.00
Retained Earnings		$ 4.00
Service Revenue		$ 63.00
Depreciation Expense	$ 3.00
Amortization Expense	$ 1.00
Income tax expense	$ 3.00
Salaries and wages expense	$ 41.00
Interest expense	$ 1.00
Supplies expense	$ 8.00
	$ 137.00	$ 137.00

6-a

Income Statement (in thousands)
Service Revenue	$ 63.00
Less: Operating Expenses
Depreciation Expense	$ 3.00
Amortization Expense	$ 1.00
Income taxe expense	$ 3.00
Salaries and wages expense	$ 41.00
Interest expense	$ 1.00
Supplies expense	$ 8.00
Total Operating Expenses	$ 57.00
Net Income	$ 6.00

6-b

Statement of Retained Earnings
(in thousands)
Balance, January 1 , 2015	$ 4.00
Add: Net Income	$ 6.00
Balance, December 31, 2015	$ 10.00

6-c

Balance Sheet
(in thousands)
Assets			Liabilities and Stock holders equity
			Accounts Payable	$ 3.00
Cash		$ 25.00	Notes Payable (Short term)	$ 29.00
Accounts Receivable		$ 3.00	Salaries and wages payable	$ 4.00
Supplies		$ 2.00	Interest Payable	$ 1.00
Equipment	$ 42.00		Income taxes Payable	$ 3.00
Less: Accumulated Depreciation	- $ 4.00	$ 38.00	Unearned revenue	$ 2.00
Software	$ 8.00		Stockholders Equity
Less: Accumulated Amortization	- $ 2.00	$ 6.00	Common Stock	$ 22.00
			Retained Earnings	$ 10.00
		$ 74.00		$ 74.00

The following information applies to the questions displayed below.) Drs. Glenn Fetham and Gary Entwistle began operations of their physical therapy clinic called Northland Physical Therapy on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, was as follows the amounts are rounded to thousands of dollars to simplify Debit Credit $ 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 Unearned Revenue Common Stock Retained Earnings Service Revenue Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense OOOOOOO Totals $26 $26 Transactions during 2015 (summarized in thousands of dollars) follow. 1. Borrowed $29 cash on July 1, 2015, signing a six-month note payable. 2. Purchased equipment for $32 cash on July 1, 2015 3. Issued additional shares of common stock for $6. 4. Earned revenues for 2015 of $63, including $9 on credit and $54 received in cash 5. Recognized salaries and wages expense for 2015 of $37; paid in cash. 6. Purchased software, $2 cash. 7. Collected accounts receivable, $8. 8. Purchased supolles on account for future use, $8. 9. Paid accounts payable, SS. 10. Received a $2 cash deposit from a hospital for a contract to start January 5, 2016. Data for adjusting journal entries: 11. Amortization for 2015, $1. 12. Supples of $2 were counted on December 31, 2015. 13. Depreciation for 2015, $3. 14. Accrued interest of $1 on notes payable. 15. Salaries and wages incurred not yet paid or recorded, $4. 16. Income tax expense for 2015 was $3 and will be paid in 2016. 7. Prepare the closing journal entry. (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.) View transaction list Journal entry worksheet Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 8. Post the closing entry from requirement answers in thousands of dollars.) and prepare a post-closing trial balance. (Enter your NORTHLAND PHYSICAL THERAPY Post-Closing Trial Balance Debit Credit in thousands) Account Titles Cash Accounts Receivable Supplies Equipment Accumulated Depreciation-Equipment Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Uneamed Revenue Common Stock Retained Earings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Totals 9-a. How much net income did the physical therapy clinic generate during 2015? (Enter your answers in thousands of dollars.) Net Income 9-b. Is the business financed primarily by liabilities or stockholders' equity? O Liabilities Stockholders' Equity 9-c. What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Numerator Denominator