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): Credit Debit $ 7 3 3 10 $ 2 6 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 ou GooooOUN 15 Totals $ 29 $ 29 Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $28 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $31 cash on July 2, 2021. 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 $61, including $8 on credit and $53 received in cash. g. Recognized salaries and wages expense on December 7 of $36; 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, 2022. Data for adjusting journal entries on December 31: k. Amortization for 2021, $2. 1. Supplies of $3 were counted on December 31, 2021. m. Depreciation for 2021, $4. n. Accrued interest of $1 on notes payable. o. Salaries and wages incurred but not yet paid or recorded, $3. p. Income tax expense for 2021 was $4 and will be paid in 2022. Journal entry worksheet 1 10 11 12 13 14 15 16 17 > Record entry to close revenue and expense accounts to retained earnings. Combine the closing of revenue and expenses into one entry. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Amortization Expense Interest Expense Income Tax Expense Salaries and Wages Expense Retained Earnings Depreciation Expense Supplies Expense Record entry Clear entry View general journal General Statement of General Requirement Income Trial Balance Journal Balance Sheet Retained Statement Ledger Analysis Earnings Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances. Post-closing General Ledger Account Cash Accounts Receivable Debit Credit Balance Debit Credit Balance 7 3 28 35 No. Date January 01, 2021 December 06, 6 2021 December 08, . 8 8 2021 8 11 31 4 5 5 9 9 2 3 6 No. Date January 01, 2021 1 July 01, 2021 2 July 02, 2021 3 July 03, 2021 4 July 04, 2021 December 06, 6 2021 December 07, 7 ] 2021 December 08, 8 2021 December 09, 9 2021 December 10, 10 2021 53 59 36 23 9 32 10 22 | 3 25 Supplies Equipment Debit Credit Balance No. Date Debit Credit Balance 3 10 No. Date January 01, 2021 5 July 05, 2021 December 31, 12 2021 January 01, 2021 2 July 02, 2021 7 10 31 41 7 3 Accumulated Depreciation Software No. Date Debit Credit Balance Debit Credit Balance 2 No. Date January 01, 2021 4 July 04, 2021 6 13 December 31, 2021 4 6 3 9 Accumulated Amortization Accounts Payable No. Date Debit Credit Balance Debit Credit Balance 2 5 January 01, 2021 December 31, 2021 No. Date January 01, 2021 5 July 05, 2021 December 09, 9 2021 7 12 11 2 4 10 2 Interest Payable Salaries and Wages Payable No. Debit Credit Balance No. Debit Credit Balance Date January 01, 2021 Neramber 31 Date January 01, 2021 Neramher 31 0 (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Post-closing NORTHLAND PHYSICAL THERAPY Trial Balance December 31, 2021 Account Title Debit Credit $ 25 2 3 41 6 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Interest Payable Salaries and Wages Payable Income Tax Payable 9 4 2 1 3 4 (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis 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. Post-closing NORTHLAND PHYSICAL THERAPY Income Statement For the Year Ended December 31, 2021 (in thousands) $ 0 0 0 0 0 0 0 0 0 n (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) ent General Statement of General Income Requirement Trial Balance Retained Balance Sheet Journal Analysis Ledger Statement Earnings Prepare the statement of retained earnings for the year ended December 31, 2021. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. Post-closing NORTHLAND PHYSICAL THERAPY Statement of Retained Earnings For the Year Ended December 31, 2021 (in thousands) Balance, January 1, 2021 0 Balance, December 31, 2021 0 (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis Use the dropdowns to select the accounts properly included on the classified balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2021 (in thousands) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Finment 41 (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis Calculate the Net Pofit Margin and Current Ratio. Net income can be found on Income statement tab. (Hint: Select Adjusted on the dropdown.) How much net income did Northland Physical Therapy, generate during 2021? What was its net profit margin? (Round "Net Profit Margin" to 1 decimal place.) Net Income Net Profit Margin % Is the business financed primarily by liabilities or stockholders' equity? What is the current ratio? (Round your answer to 2 decimal places.) Current Ratio