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: NNO Account Titles Debit Credit 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 OOOOOO Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $26 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $29 cash on July 2, 2018. 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. 1. Recorded revenues on December 6 of $60. including $9 on credit and $51 received in cash. g. Recognized salaries and wages expense on December 7 of $34; 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. $3. 7. 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. (l.e., $100,000 should be entered as $100).) Statement of General General Income Requirement Journal Ledger Trial Balance Statement Retained Balance Sheet Analysis Earnings Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances. Adjusted - General Ledger Account Accounts Receivable Debit Credit Balance Debit Credit Balance Date Jan 01, 2018 6 Dec 06, 2018 8 Dec 08, 2018 Date | Jan 01, 2018 Jul 01, 2018 2 Jul 02, 2018 3 Jul 03, 2018 4 Jul 04.2018 o Dec 08, 2018 7 Dec 07, 2018 8 Dec 08, 2018 o Deo 00.2018 10 Dec 10, 2018 - Equipment Supplies Debit Credit Balance Debit Credit Balance No. Date Jan 01, 2018 - 5 Jul 05, 2018 12 Dec 31, 2018 Date Jan 01, 2018 2 Jul 02. 2018 Ac a Sollte d Depreciation Equipment Debit Credit Dute Balance No. Debit Credit Balance Date Jan 01, 2018 Jul 04, 2018 Jan 01. 2018 Dec 31, 2018 13 De Accounts Payable Debit Credit Balance Date Balance Accumulated Amortization No Date Debit Credit Jan 01, 2018 - 11 Dec 31, 2018 Jan 01, 2018 6 Jul 05, 2018 0 Dec 09, 2018 Interest Payable Debit Credit Balance Balance No. Date Jan 01, 2018 - 14 Dec 31, 2018 Salaries and Wages Payable Date Debit Credit Jon 01. 2018 15 Dec 31, 2018 Income Tax Payable Debit Credit Deferred Revenue Credit Balance Debit Balance No. Date Jan 01, 2018 10 Dec 31, 2018 No. Date Jan 01, 2018 10 Dec 10, 2018 No. Common Stock Debit Credit Notes Payable (short-term) Date Debit Credit Jan 01, 2018 11 Jul 01. 2018 Balance No Balance Date Jan 01, 2018 Jul 03.2018 3 Retained Earings Service Revenue Debit Credit No. Debit Credit Balance No. Balance Date Jan 01, 2018 Date Jan 01, 2018 6 Dec 06, 2018 Amortization Expense Depreciation Expense Debit Credit No. Debit Credit Balance No. Balance Date Jan 01, 2018 11 Dec 31, 2018 Date Jan 01, 2018 13 Dec 31, 2018 - Interest Expense Salaries and Wages Expense No. Debit Credit Balance Debit Credit Balance Date Jan 01, 2018 14 Dec 31, 2018 No. Date Jan 01, 2018 7 Dec 07, 2018 15 Dec 31, 2018 341 Income Tax Expense Supplies Expense Debit Credit No. Balance Debit Credit Balance Date Jan 01. 2018 12 Dec 31, 2018 No Date Jan 01, 2018 10 Dec 31, 2018 (General Journal Trial Balance > Adjusted NORTHLAND PHYSICAL THERAPY Trial Balance Doumber 31, 2018 Account Title Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Equipment Software Accumulated Amortization Accounts Payable Pinterest Payable -Salaries and Wages Payable income Tax Payable Deferred Revenue Notes Payable (short-term) Common Stock -Retained Earnings Service Revenue Amortization Expense Depreciation Expense interest Expense salaries and Wages Expense Supplies Expense Income Tax Expense Total Income Statement of Requirement General Journal General Ledger Trial Balance Statement Retained Earnings Balance Sheet Analysis Use the dropdowns to select the accounts properly included on the dassified balance sheet. The unadjusted, adjusted, or post-closing balance each account, based on your selection. Adjusted NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2018 (in thousands) OOOOOOOO 0 o (Statement of Retained Eamings Analysis > Trial Balance Statement General General Income Statement of Requirement Journal Ledger Retained Balance Sheet Analysis Earnings Calculate the Net Pofit Margin and Current Ratio. Net income can be found on Income statement tab. (Hint: Select Adjusted on the dropdown.) Adjusted Dates: Jan 01, 2015 - to: Dec 31, 2018 How much net income did Northland Physical Therapy, Ine generate during 2018? What was its net profit margin? (Round Net Prolit Margin to 1 decimal place.) Net Income Net Profit Margin Is the company financed primarily by liabilities or stockholders' equ What is the current ratio? (Round your answer to 2 decimal places.) Current Ratio