Drs$.$ Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January $1,2020.$ The annual reporting period ends December $31.$ The trial balance on January $1,2021,$ was as follows $($the amounts are rounded to thousands of dollars to simplify$)$:

Account Titles Debit Credit

Cash $ $8$

Accounts Receivable $4$

Supplies $4$

Equipment $9$

Accumulated Depreciation $ $1$

Software $4$

Accumulated Amortization $1$

Accounts Payable $4$

Notes Payable $($short$-$term$)0$

Salaries and Wages Payable $0$

Interest Payable $0$

Income Taxes Payable $0$

Deferred Revenue $0$

Common Stock $14$

Retained Earnings $9$

Service Revenue $0$

Depreciation Expense $0$

Amortization Expense $0$

Salaries and Wages Expense $0$

Supplies Expense $0$

Interest Expense $0$

Income Tax Expense $0$

Totals $ $29$ $ $29$

Transactions during $2021($summarized in thousands of dollars$)$ follow:

Borrowed $$21$ cash on July $1,2021,$ signing a six$-$month note payable.

Purchased equipment for $$24$ cash on July $2,2021.$

Issued additional shares of common stock for $$4$ on July $3.$

Purchased software on July $4,$ $$4$ cash.

Received supplies on July $5$ on account for future use, $$6.$

Recorded revenues on December $6$ of $$56,$ including $$10$ on credit and $$46$ received in cash.

Recognized salaries and wages expense on December $7$ of $$29$; paid in cash.

Collected accounts receivable on December $8,$ $$7.$

Paid accounts payable on December $9,$ $$8.$

Received a $$4$ cash deposit on December $10$ from a hospital for a contract to start January $5,2022.$

Data for adjusting journal entries on December $31$:

Amortization for $2021,$ $$1.$

Supplies of $$4$ were counted on December $31,2021.$

Depreciation for $2021,$ $$2.$

Accrued interest of $$1$ on notes payable.

Salaries and wages incurred but not yet paid or recorded, $$4.$

Income tax expense for $2021$ was $$5$ and will be paid in $2022.$Enter all of your answers in thousands of dollars. $($i$.$e$.,$ $$100,000$ should be entered as $$100).)$

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.

NORTHLAND PHYSICAL THERAPY

Income Statement

For the Year Ended December $31,2021$

$($in thousands$)$