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 Januory 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): Account Titles Debit Credit Cash $ 6 Accounts Receivable 2 Supplies 2 Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payablo (short-term) Balaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue Common Stook Retained Earnings Service Revenue Depreciation pondo Amortization Expense 0 Salaries and Wages Expense Supplies Expense Interest Expense 0 Income Tax Expense Totalo $24 524 0 0 0 0 $28 0 1:1 Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $32 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $35 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. . Recorded revenues on December 6 of $66, including $9 on credit and $57 received in cash. g. Recognized salaries and wages expense on December 7 of $40; paid in cash. h. Collected accounts receivable on December 8, $8. 1. 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. 1. Supplies of $2 were counted on December 31, 2018. m. Depreciation for 2018, $3. 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 2018 was $3 and will be paid in 2019. (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs, Unadjusted NORTHLAND PHYSICAL THERAPY Trial Balance December 10, 2018 Account Title Debit Credit $ 6 2 2 8 1 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation-Equipment Software Accumulated Amortization Accounts Payable Common Stock Retained Earnings Total 6 1 5 12 27 5 24 $ 24 Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted from the dropdown, which will then populate the balances in those accounts from the trial balance. Unadjusted NORTHLAND PHYSICAL THERAPY Income Statement For the Year Ended December 31, 2018 (in thousands) $ oo 0 0 0 0 0 0 0 $ 0 Prepare the statement of retained earnings for the year ended December 31, 2018. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. Unadjusted NORTHLAND PHYSICAL THERAPY Statement of Retained Earnings For the Yoar Endod December 31, 2018 (in thousands) Balance, January 1, 2018 Add: Net Income Less: Dividends Balance, December 31, 2018 0 0 Use the dropdowns to select the accounts property included on the classified balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection, Unadjusted NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2018 in thousands) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Calculate the Net Pofit Margin and Current Ratio. Net income can be found on Income statement tab. (Hint: Select Adjusted on the dropdown.) to: Dec 10, 2018 Unadjusted Dates: Jan 01, 2015 How much net income did Northland Physical Therapy, Inc., generate during 2018? What was its not profit margin? (Round "Net Profit Margin to 1 decimal place) Net Income Net Profit Margin % Is the company financed primarily by liabilities or stockholders' equity? What is the current ratio? (Round your answer to 2 decimal places.) Current Ratio