Debit Credit 3 LE Drs. Glenn Feltham and Gary Entwistle 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: Transactions during 2018 (summarized in thousands of dollars) follow 1. Borrowed $22 cash on July 1, 2018, signing a six-month note payable. *b. Purchased equipment for $25 cash on July 1, 2018. C. Issued additional shares of stock for $5. d. Eamed revenues for 2018 of $55, including $8 on credit and $47 received in cash. e. Recognized wages expense for 2018 of $30. paid in cash. f. Purchased other noncurrent assets. $3 cash. 9. Collected accounts receivable, $9. h. Purchased supplies on account for future Use, $7. i Paid accounts payable, $10. j. Received a $3 deposit from a hospital for a contract to start January 5, 2019. k. Declared and paid a cash dividend, $4. Account Tiles Cash Accounts Recohablo Supplies Equipment Accumulated Depreciation Other Noncurrent Assets Accounts Payablo Notes Payablo Wages Payable Interest Payable Income Taxos Payablo Unearned Revenue Contributed Capital Rotalnod Earnings Dividends Declared Service Revenue Wagos Expono Depreciation Expense Income Tax Expense Interest Expono Supples Expense Totals *- 0 0 0 0 0 Data for adjusting journal entries: Supplies of $3 were counted on December 31, 2018 m. Depreciation for 2018, 54 n. Accrued interest of $1 on notes payable. o. Wages incurred not yet paid or recorded, $3. p. Income tax expense for 2018 was $4, and will be paid in 2019. Required: 1. Set up T-accounts for the accounts on the trial balance and enter beginning balances 2. Record journal entries for transactions (a) through (k), and post them to the T-accounts. 3. Record and post the adjusting journal entries through (p). 4. Prepare an adjusted trial balance. 5. Prepare an income statement, statement of retained earnings, and balance sheet. 6. How much net income did the physical therapy clinic generate during 2018? What was its net profit margin? Is the business financed primarily by liabilities or stockholders' equity? What is its current ratio