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 7 Accumulated Depreciation $ 2 Software 6 Accumulated Amortization 2 Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue Common Stock 15 Retained Earnings 2 Service Revenue Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense Totals $ 26 NOON $ 26 Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $14 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $17 cash on July 2, 2021. c. 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. f. Recorded revenues on December 6 of $47, including $8 on credit and $39 received in cash. g. Recognized salaries and wages expense on December 7 of $22; paid in cash. h. Collected accounts receivable on December 8, $9. i. Paid accounts payable on December 9, $10. J. 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, $2. 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. Statement of Requirement General Income General Ledger Trial Balance Retained Journal Balance Sheet Statement Analysis Earnings Prepare the journal entries to record transactions (a) through ). 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. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list x 17 > 1 Borrowed $14 cash on July 1, 2021, signing a six-month note payable. Record the transaction. 2 Purchased equipment for $17 cash on July 2, 2021. Record the transaction. Record Issued additional shares of common stock for $5 on July 3. Record the transaction. + Purchased software on July 4, $3 cash. Record the transaction. Credit 5 Purchased supplies on July 5 on account for future use, $7. Record the transaction. dan Note: - journal entry has been entered Record entry Clear entry View general journal General Income Statement on Requirement Journal General Ledger Trial Balance Retained Balance Sheet Statement Analysis Earnings Prepare the journal entries to record transactions (a) through C). 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. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list 17 6 Recorded revenues on December 6 of $47, including $8 on credit and $39 received in cash. Record the transaction. Record 7 Recognized salaries and wages expense on December 7 of $22; paid in cash. Record the transaction. 8 Collected accounts receivable on December 8, $9. Record the transaction. Credit 9 Paid accounts payable on December 9, $10. Record the transaction. 10 Received a $3 cash deposit on December 10 from a hospital for a contract to start January 5, 2022. Record the transaction. Note : = journal entry has been entered Record entry Clear entry View general Journal Rodicament Generador General Statement of Requirement Income General Ledger Trial Balance Journal Balance Sheet Retained Analysis Statement Earnings Prepare the journal entries to record transactions (a) through 0). 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. (if no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list 17 Record Credit 11 Amortization for 2021, $2. Record the adjusting entry. 12 Supplies of $3 were counted on December 31, 2021. Record the adjusting entry. 13 Depreciation for 2021, $4. Record the adjusting entry. 14 Accrued interest of $1 on notes payable. Record the adjusting entry. 15 Salaries and wages incurred but not yet paid or recorded, $4. Record the adjusting entry. 16 Income tax expense for 2021 was $4 and will be paid in 2022. Record the adjusting entry, Note :- Journal entry has been entered Record entry Clear entry View general Journal General Statement of Requirement Income General Ledger Trial Balance Journal Balance Sheet Retained Analysis Statement Earnings Prepare the journal entries to record transactions (a) through 0). 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. (if no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list ELI 4 Luis guJ51 19 CHAI 17 Record Credit 13 Depreciation for 2021, $4. Record the adjusting entry. 14 Accrued interest of $1 on notes payable. Record the adjusting entry 15 Salaries and wages incurred but not yet paid or recorded, $4. Record the adjusting entry. 16 Income tax expense for 2021 was $4 and will be paid in 2022. Record the adjusting entry 17 Record entry to close revenue and expense accounts to retained earnings. Combine the closing of revenue and expenses into one entry. Note: - Journal entry has been entered Record entry Clear entry View general Journal