Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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): Credit Debit $ 6 2 2 10 $ 3 8 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 3 6 0 0 0 0 0 13 3 0 0 0 0 0 0 0 $28 $28 Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $13 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $16 cash on July 2, 2018. c. Issued additional shares of common stock for $6 on July 3. d. Purchased software on July 4, $2 cash. e. Purchased supplies on July 5 on account for future use, $8. f. Recorded revenues on December 6 of $47, including $9 on credit and $38 received in cash. g. Recognized salaries and wages expense on December 7 of $21; paid in cash. h. Collected accounts receivable on December 8, $8. i. Paid accounts payable on December 9, $9. j. Received a $2 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, $3. 1. Supplies of $2 were counted on December 31, 2018. m. Depreciation for 2018, $3. 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 $3 and will be paid in 2019. 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 Dec 31, 2018 NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2018 (in thousands) Assets Current Assets 0 0 OOOOO 0 0 0 0 0 0 0 0 0 0 0 4 0 0 0 $ 4 | General General Income Statement of Requirement Journal Ledger Trial Balance Statement Retained Balance Sheet Analysis Earnings Calculate the Net Pofit Margin and Current Ratio. Net income can be found on Income statement tab. (Hint: Select Adjusted on the dropdown.) to: Dec 31, 2018 Adjusted Dates: Jan 01, 2015 How much net income did Northland Physical Therapy, Inc., generate during 2018? What was its net profit margin? (Round "Net Profit Margin" to 1 decimal place.) Net Income Net Profit Margin % Is the company financed primarily by liabilities or stockholders' equity? What is the current ratio? (Round your answer to 2 decimal places.) Current Ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started