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 Credit www 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 $30 Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $31 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $34 cash on July 2, 2018. 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 $64, including $8 on credit and $56 received in cash. g. Recognized salaries and wages expense on December 7 of $39; 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, 2019. Data for adjusting journal entries on December 31: k. Amortization for 2018, $3. 1. Supplies of $3 were counted on December 31, 2018. m. Depreciation for 2018, $4. n. Accrued interest of $1 on notes payable. o. Salaries and wages incurred but not yet paid or recorded, $3. p. Income tax expense for 2018 was $4 and will be paid in 2019. (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis 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. Post-closing - NORTHLAND PHYSICAL THERAPY Income Statement For the Year Ended December 31, 2018 (in thousands) Requirement General Journal General Ledger Trial Balon Trial Balance Income Statement Statement of 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. Post-closing- NORTHLAND PHYSICAL THERAPY Statement of Retained Earnings For the Year Ended December 31, 2018 (in thousands) Balance, January 1, 2018 Balance, December 31, 2018 Statement of General General Income Requirement Journal Ledger Trial Balance Statement Retained Balance Sheet Analysis Earnings Use the dropdowns to select the accounts properly included on the classified balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2018 (in thousands) 0 o 0 0 0 Statement of General Income General Requirement Retained Journal Trial Balance Ledger Balance Sheet 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.) Post-closing Dates: Jan 01, 2015 to: Dec 31, 2018 - How much net income did Northland Physical Therapy, Inc., generate during 2018? What was its net 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