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: Debit Credit $ 8 4 9 $ 1 4 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 1 4 0 0 0 0 0 14 0 0 0 0 0 0 0 $29 $29 Transactions during 2018 follow: a. Borrowed $21 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $24 cash on July 2, 2018 c.Issued additional shares of common stock for $4 on July 3. d. Purchased software on July 4, $4 cash. e. Purchased supplies on July 5 on account for future use. $6. f Recorded revenues on December 6 of $56, including $10 on credit and $46 received in cash. g. Recognized salaries and wages expense on December 7 of $29; paid in cash. Data for adjusting journal entries on December 31: k. Amortization for 2018, $1. 1. Supplies of $4 were counted on December 31, 2018. m. Depreciation for 2018, $2. 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 $5 and will be paid in 2019. 6-a. Prepare an income statement. (values shown are "in thousands" so DO NOT add extra zeros) 6-b. Prepare the statement of retained earnings.(values shown are "in thousands" so DO NOT add extra zeros) 6-c. Prepare the balance sheet. (values shown are "in thousands" so DO NOT add extra zeros) Assets NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2018 (in thousands) Liabilities Current Liabilities $ 25 Accounts Payable 7 Notes Payable (short-term) 4 Salaries and Wages Payable Interest Payable Income Tax Payable Deferred Revenue $ Current Assets Cash Accounts Receivable Supplies 2 21 23 36 Total Current Liabilities Stockholders' Equity Common Stock Retained Earnings Total Current Assets Equipment Software Accumulated Depreciation 37 4 41 3 0 3 80 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets $ 23