C4-3 Recording Transactions (including Adjusting Journal Entries). Preparing Financial Statements and Closing Journal Entries, and Computing Net Pront 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: 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 Totale OOOOOO Transactions during 2018 summarized in thousands of dollars) follow 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. 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. 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. n. 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. 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. (l.e., $100,000 should be entered as $100).) Requirement General Journal General Ledger Trial Balance Income Statement Satment of Retained Earnings Balance Sheet Analysis Prepare the journal entries to record transactions (a) through 6). Then prepare the necessary adjusting entries (k) through () to correctly report net income for the period. Then record the dosing 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 Journal entry worksheet 1 2 3 4 17 > Borrowed $26 cash on July 1, 2018, signing a sbe-month note payable. Record the transaction. Note: Enter debits before credits Date General Journal - Debit Credit Credit Jul 01, 2018 de View general General General Income Statement of Requirement Trial Balance Ledger Statement Retained Journal Balance Sheet Analysis Earings Each joumal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances. Unadjusted General Ledger Account Cash Accounts Receivable No. Date Debit Credit Balance No. Debit Credit Balance Date Jan 01, 2018 Jan 01, 2018 Supplies Equipment No. Debit Credit Balance No. Debit Credit Balance Date Jan 01, 2018 Date Jan 01, 2018 Software No. Accumulated Depreciation Equipment Date Debit Credit Jan 01. 2018 Balance No. Debit Credit Balance Date Jan 01, 2018 Accounts Payable Accumulated Amortization Date Debit Credit Jan 01. 2018 Balance No. Debit Credit Balance Date Jan 01, 2018 3 Common Stock Debit Credit Retained Earnings Debit Credit No Balance Date Jan 01. 2018 Date Balance 10 Jan 01, 2018 Income Requirement General Journal General Ledger Trial Balance Statement Statement of Retained Earnings Balance Sheet Analysis Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-dosing 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 *Cash - Accounts Receivable Supplies Equipment Accumulated Depreciation Equipment -Software Accumulated Amortization - Accounts Payable Common Stock Retained Earnings Total Statement of General General Income Requirement Ledger Trial Balance Journal Retained Statenent Balance Sheet Analysis Earnings 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) / TI General Statement of General Journal Income Requirement Trial Balance Ledger Statement Retained Balance Sheet Analysis Earnings 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 Year Ended December 31, 2018 (in thousands) Balance, January 1, 2018 Balance, December 31, 2018 Requirement General Journal General Ledger Trial Balance Income Statement Statement of 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 balances will appear for each account, based on your selection. Unadjusted - NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2018 in thousands Statement of General General Income Requirement Trial Balance Ledger Retained Balance Sheet Journal Analysis Statement Earnings 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 20187 What was its net profit margin? (Round Wet 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