Account Titles Debit Credit

Cash $ $7$

Accounts Receivable $3$

Supplies $3$

Equipment $8$

Accumulated Depreciation $ $1$

Software $5$

Accumulated Amortization $1$

Accounts Payable $5$

Notes Payable $($short$-$term$)0$

Salaries and Wages Payable $0$

Interest Payable $0$

Income Taxes Payable $0$

Deferred Revenue $0$

Common Stock $15$

Retained Earnings $4$

Service Revenue $0$

Depreciation Expense $0$

Amortization Expense $0$

Salaries and Wages Expense $0$

Supplies Expense $0$

Interest Expense $0$

Income Tax Expense $0$

Totals $ $26$ $ $26$

Transactions during $2021($summarized in thousands of dollars$)$ follow:

Borrowed $$22$ cash on July $1,2021,$ signing a six$-$month note payable.

Purchased equipment for $$25$ cash on July $2,2021.$

Issued additional shares of common stock for $$5$ on July $3.$

Purchased software on July $4,$ $$3$ cash.

Received supplies on July $5$ on account for future use, $$7.$

Recorded revenues on December $6$ of $$55,$ including $$8$ on credit and $$47$ received in cash.

Recognized salaries and wages expense on December $7$ of $$30$; paid in cash.

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 $31$:

Amortization for $2021,$ $$1.$

Supplies of $$3$ were counted on December $31,2021.$

Depreciation for $2021,$ $$4.$

Accrued interest of $$1$ on notes payable.

Salaries and wages incurred but not yet paid or recorded, $$3.$

Income tax expense for $2021$ was $$4$ and will be paid in $2022.$

C$4-3($Static$)$ Part $9$

$9-$a$.$ How much net income did the physical therapy clinic generate during $2021?$ What was its net profit margin?