CHAPTER 4 Adstecen, rancid Sta ts ond Frascal n Apcoure Titles Debt Creds Cnt Accounts Recevable Supples Equipnent Accumuated Osprection Software Accumulated Amonzation ccounts Payati Notirs Pyable hhort term Salgties and Wiges Pay Inerest Payoble income Tars Paytle Delered Revono 0 Common Stock 18 Rotaned Eamings 4 Service Rovenue Depiecianon Expers Amortzapon Excense Soones and Wages Experse Supples Experee Interest Expene ntome Tex Expenser $26 Totols Transactions during 2018 (summarized in thousands of dallasi follow Borrowed $22 cash on July 1, 2018, signing a six-month note payable.. Parchased equipment for $25 cash on July 2, 2018. Issued additional shares of common stock for 55 an July 31 Purchased software on July 4, $3 cash. 4. d Purchased supplies on July 5 on account foe future use, S7 Recorded revenues on December 6 of $55, including $8 on credit and S47 received in cash, Recognized salaries and wages expense on December 7 of $30 paid in cash. Collected accounts receivable on December 8, S9 Paid accounts puyable on December 9, $10. Received a $3 cash deposit an December 10 from a hospital for a cantract to start January 5, i 2019 Data for adjusting journal entries on December 31: Amortization for 2018, $1 Supplies of S3 were counted on December 31, 2018 m. Depreciation for 2018, $4, Accrued interest of $1 on notes payable. Salaries and wages incurred but not yet paid Income tax expense for 2018 was $4 and will be paid in 2019, or recoeded, $3, Required: 1. Set up T-accounts for the accounts on the trial balance and enter beginning balances. If you are completing this problem in Connect using the general ledger tool, this requirement will be completed for you 2. Record journal entries for transactions (a) through (). TER 4 Adjustments, Financial Statements, and Financial Results 3. Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance. If you are completing this problem in Connect using the general ledger tool, this requirement will be completed for you using your answers to requirement 2. Record the adjusting journal entries (k) through (p). Post the adjusting entries from requirement 4 and prepare an adjusted trial balance. If you are completing this problem in Connect using the general ledger tool, this requirement will be completed for you using your previous answers Prepare an income statement, statement of retained earnings, and balance sheet. Prepare the closing journal entry Post the closing entry from requirement 7 and prepare a post-closing trial balance. If you are completing this problem in Connect using the general ledger tool, this requirement will be completed for you using your previous answers How much net income did the physical therapy clinic generate during 2018? What was its net 4. 5. 6. 7. 8 9. profit margin? Is the business financed primarily by liabilities or stockholders' cquity? What is its current ratio? LO 2-3, 3-3,4-1,4-2, 4-3, 4-4, 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) 4-5, 4-6 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)