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 Account Titles Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and aes Payable Interest Payable Income Taxes Payable Derdere Common stock Retained Earnings Service Revenue Depreciation Expense mortization Expense Salaries and ages Expense Supplies Expense Interest Expense Income Tax Expense Transactions during 2018 summarized in thousands of dollars) follow a Borrowed 514 cash on July 1, 2018 signing a six-month note payable b. Purchased equipment for 517 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 Recorded revenues on December 6 of 547, including S8 on credit and $39 received in a g. Recognized salaries and wages expense on December 7 of $22 paid in cash n Collected accounts receivable on December 8.59 Paid accounts payable on December 9, $10. Received a $3 cash deposit on December 10 from a hospital for a contract to start January 5, 2019 Total $26 $26 Transactions during 2018 (summarized in thousands of dollars) follow a. Borrowed $14 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $17 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 $47, including $8 on credit and $39 received in cash g. Recognized salaries and wages expense on December 7 of $22; 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. $2 . 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, $4 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).) (Enter all of your answers in thousands of dollars. (.e., $100,000 should be entered os $100).) General Requirement General Journal Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis General Journal tab - Prepare the journal entries to record the transactions (a) through ). Review the accounts as shown in the General Ledger and Trial Balance tabs. Then prepare the necessary adjusting entries (k) through (p) to correctly report net income for the period. Then record the closing entry as of December 31. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances in the General Ledger Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the drop-down. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account based on your selection Statement of Retained Earnings tab - Prepare the statement of retained earnings for the year ended December 31, 2018. Balance Sheet tab - Use the drop-down to select the accounts to properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Analysis tab - Using the information from the requirements above, complete the 'Analysis' tab. Regu General Journal > View transaction list Journal entry worksheet ..... 17 Borrowed $14 cash on July 1, 2018, signing a six-month note payable. Record the transaction. Note: Enter debits before credits General Journal Debit Credit Date Jul 01, 2018 Notes Payable (short-term) Record entry Clear entry View general journal View transaction list Journal entry worksheet Journal entry worksheet Issued additional shares of common stock for $5 on July 3. Record the transaction. Note: Enter debits before credits General Journal Debit Credit Date Jul 03, 2018 Common Stock Record entry Clear entry View general journal Journal entry worksheet Purchased software on July 4, $3 cash. Record the transaction. Note: Enter debits before credits Date General Journal Debit Credit Jul 04, 2018 Software Record entry Clear entry View general journal View transaction list Journal entry worksheet Ko @ O O OOO...... 1 > Purchased supplies on July 5 on account for future use, $7. Record the transaction Note: Enter debits before credits. Debit Credit Date Jul 05, 2018 General Journal Supplies Accounts Payable katika Record entry Clear entry View general journal View transaction list Journal entry worksheet View transaction list Journal entry worksheet View transaction list Journal entry worksheet View transaction list Journal entry worksheet Salaries and wages incurred not yet paid or recorded, $4. Record the transaction. Note: Enter debits before credits Date General Journal Debit Credit Dec 31, 2018 Record entry Clear entry View general journal View transaction list Journal entry worksheet View transaction list Journal entry worksheet 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. Adjusted NORTHLAND PHYSICAL THERAPY Income Statement For the Year Ended December 31, 2018 (in thousands) General Journal Requirement General Ledger Statement of Retained Income Statement Trial Balance Balance Sheet Analysis Famnings 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. Adjusted NORTHLAND PHYSICAL THERAPY Statement of Retained Earnings For the Year Ended December 31, 2018 (in thousands) Balance, January 1, 2018 Balance, December 31, 2018