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 Debit Credit Cash $ 7 Accounts Receivable 3 Supplies 3 Equipment 9 Accumulated Depreciation Software 5 Accumulated Amortization Accounts Payable S Notes Payable short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue Common Stock 15 Retained Earnings 5 Service Revenue Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense 0 Totals $ 27 $ 27 D 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 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. 1. Pald 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. o 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 Data for adjusting journal entries on December 31: 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. o. 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).) General Journal Requirement General Ledger Analysis Income Statement Trial Balance Statement of Retained Balance Sheet Earnings - General Journal tab - Prepare the journal entries to record the transactions (a) through C). Review the accounts as shown in the General Ledger and Trial Balance tabs. Then prepare the necessary adjusting entries (k) through () 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 vie 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 > - General Journal tab - Prepare the journal entries to record the transactions (a) through C). 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. Journal entry 1 2 3 17 4 5 6 7 8 Borrowed $17 cash on July 1, 2021, signing a six-month note payable. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date July 01, 2021 Record entry Clear entry View general journal Journal entry worksheet Purchased software on July 4, $3 cash. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date July 04, 2021 Record entry Clear entry View general journal Journal entry worksheet 17 > 2 3 8 4 5 6 7 17 Collected accounts receivable on December 8, $9. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date December 08, 2021 Record entry Clear entry View general journal Journal entry worksheet 1 4 5 6 7 8 9 17 Paid accounts payable on December 9, $10. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date December 09. 2021 Record entry Clear entry View general journal Journal entry worksheet 17 Received a $3 cash deposit on December 10 from a hospital for a contract to start January 5, 2022. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date December 10, 2021 Record entry Clear entry View general journal Journal entry > 1 11 17 8 9 10 ... 6 7 .... Amortization for 2021, $1. Record the adjusting entry. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general journal Journal entry worksheet 11 12 17 .... Supplies of $3 were counted on December 31, 2021. Record the adjusting entry. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2021 Record entry Clear entry View general journal Accrued interest of $1 on notes payable. Record the adjusting entry. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general journal Journal entry worksheet Statement of General General Income juirement Trial Balance Retained Balance Sheet Analysis Journal Ledger Statement Earnings th journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, post-closing balances. idjusted General Ledger Account Cash Accounts Receivable Debit Credit Balance Balance No. Debit Credit Date January 01, 2021 Date January 01 2021 3 Equipment Supplies Debit Credit Balance Balance No. Debit Credit Date January 01, 2021 3 Date January 01 2021 Software Accumulated Depreciation Debit Credit Balance Date No. Debit Credit Balance Date January 01 2021 Accumulated Amortization Date Debit Credit January 01 2021 Accounts Payable Debit Credit Balance No. Balance Date January 01 2021 5 Common Stock Retained Earnings Debit Credit Debit Credit Balance No. Balance Date January 01, 2021 Date January 01, 2021 15 5 General General Income Requirement Retained Balance Sheet Trial Balance Analysis Journal Ledger Statement Earnings Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The opti you choose will be the values used to populate the income statement and balance sheet tabs. Unadjusted NORTHLAND PHYSICAL THERAPY Trial Balance December 10, 2021 Account Title Debit Credit $ 7 3 3 9 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Common Stock Retained Earnings Total 2 t t 2 2 2 5 Statement of General General Income juirement Retained Trial Balance Balance Sheet Analysis Journal Ledger Statement Earnings Sice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option i choose will be the values used to populate the income statement and balance sheet tabs. djusted NORTHLAND PHYSICAL THERAPY Trial Balance December 10, 2021 Account Title Debit Credit $ 7 3 3 9 1 sh sounts Receivable pplies uipment cumulated Depreciation Itware sumulated Amortization counts Payable mmon Stock tained Earnings 5 1 5 15 5 $ 27 $ 27 Unadjusted NORTHLAND PHYSICAL THERAPY Income Statement For the Year Ended December 31, 2021 (in thousands) General Requirement General Statement of Income Journal Ledger Retained Trial Balance Balance Sheet Analysis Statement Earnings Prepare the statement of retained earnings for the year ended December 31, 2021. You will need to determine and enteri 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 Balance, December 31, 2021 General General Statement of Income Requirement Trial Balance Balance Sheet Journal Ledger Retained Analysis Statement Earnings Use the dropdowns to select the accounts properly included on the classified balance sheet. The unadjusted, adjusted, or appear for each account, based on your selection. Unadjusted NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2021 (in thousands) Equipment 9 Software Trial Balance Statement of General General Income Requirement Retained Balance Sheet Analysis Journal Ledger Statement Earnings Calculate the Net Pofit Margin and Current Ratio. Net Income can be found on Income statement tab. (Hint: Select Adjuste 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 rent ratio? (Round your answer to 2 decimal places.) Current Ratio