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 DarningS Service Revenue Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense nterest Dxpense Income Tax Expense Debit Credit s 6 10 s 1 16 0 $26 $26 Totals Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $29 cash on July 1, 2018, signing a six-month note payable b. Purchased equipment for $32 cash on July 2, 2018 c. Issued additional shares of common stock for $6 on July 3 d. Purchased software on July 4, $2 cash. e. Purchased supplies on July 5 on account for future use, $8 f Recorded revenues on December 6 of $63, including $9 on credit and $54 received in cash g. Recognized salaries and wages expense on December 7 of $37; paid in cash. h. Collected accounts receivable on December 8, $8. i. Paid accounts payable on December 9, $9 j. Received a $2 cash deposit on December 10 from a hospital for a contract to start January 5, 2019 Data for adjusting journal entries on December 31 k. Amortization for 2018, $1. l Supplies of $2 were counted on December 31, 2018. m. Depreciation for 2018, $3. o. Salaries and wages incurred but not yet paid or recorded, $4. p. Income tax expense for 2018 was $3 and will be paid in 2019. NORTHLAND PHYSICAL THERAPY Income Statement At December 31, 2018 (in thousands) Revenues Service Revenue 63 63 Expenses Depreciation Expense Interest Expense Income Tax Expense Salaries and Wages Expense 37 Total Expenses 19 Net Income NORTHLAND PHYSICAL THERAPY Statement of Retained Earnings in thousands) Balance, January 1, 2018 Add: Net Income Less: Dividends Balance, December 31, 2018 0 NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2018 in thousands) Liabilities Assets Current Assets Current Liabilities Cash 27 Accounts Payable Notes Payable (short-term) Interest Payable Income Tax Payable Accounts Receivable 29 0 0 41 Total Current Liabilities 38 31 Total Current Assets Stockholders' Equity Retained Earnings 4 0 Total Stockholders' Equity 31Total Liabilities and Stockholders' Equity 4 42 otal Assets