Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

C4-3 Recording Transactions (Including Adjusting Journal Entries), Preparing Financial Statements and Closing Journal Entries, and Computing Net Profit Margin and Current Ratio (Chapters 2, 3,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
C4-3 Recording Transactions (Including Adjusting Journal Entries), Preparing Financial Statements and Closing Journal Entries, 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 4-4, L Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, was as follows the amounts are rounded to thousands of dollars to simplify Debit $ 8 Credit 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 Earnings Service Revenue Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense Totals an of dollars follow a. Borrowed $27 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $30 cash on July 2, 2018. c. Issued additional shares of common stock for $4 on July 3. d. Purchased software on July 4, $4 cash. e. Purchased supplies on July 5 on account for future use, $6. f. Recorded revenues on December 6 of $62, including $10 on credit and $52 received in cash. g. Recognized salaries and wages expense on December 7 of $35; paid in cash. h. Collected accounts receivable on December 8, $7. 1. Paid accounts payable on December 9, $8. j. Received a $4 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. 1. Supplies of $4 were counted on December 31, 2018. m. Depreciation for 2018, $2. n. Accrued interest of $1 on notes payable. o. Salaries and wages incurred but not yet paid or recorded, $2. p. Income tax expense for 2018 was $5 and will be paid.in 2019. Cash Accounts Recelvable No. Debit Credit Balance Debit Credit Balance Date Jan 01, 2018 1 2 3 Date Jan 01, 2018 Jul 01, 2018 Jul 02, 2018 Jul 03, 2018 Supplies Equipment Debit Credit Balan Debit Credit Balance Date Jan 01, 2018 Date Jan 01, 2018 2 Jul 02, 2018 30 Accumulated Depreciation Equipment Software Date Credit Balance NO Debit Credit Balance Jan 01, 2018 Date Jan 01, 2018 Accumulated Amortization Accounts Payable Debit Credit Debit Credit Date Date Jan 01, 2018 Jan 01, 2018 Notes Payable (short-term) Date Debit Credit Jan 01, 2018 1 Jul 01, 2018 Common Stock Debit Credit Balance Date Jan 01, 2018 Jul 03, 2018 3 Retained Earnings Debit Credit Balance Date Jan 01, 2018 Unadjusted NORTHLAND PHYSICAL THERAPY Trial Balance December 10, 2018 Account Title Debit ces Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Equipment Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Common Stock Retained Earnings Total 5 59 NORTHLAND PHYSICAL THERAPY Income Statement For the Year Ended December 31, 2018 (in thousands) ces OOO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

The company has fair promotion/advancement policies.

Answered: 1 week ago