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	8
Accumulated Depreciation		$ 1
Software	4
Accumulated Amortization		1
Accounts Payable		5
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		7
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	$ 28	$ 28

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

1. Borrowed $12 cash on July 1, 2021, signing a six-month note payable.
2. Purchased equipment for $15 cash on July 2, 2021.
3. Issued additional shares of common stock for $4 on July 3.
4. Purchased software on July 4, $4 cash.
5. Received supplies on July 5 on account for future use, $6.
6. Recorded revenues on December 6 of $47, including $10 on credit and $37 received in cash.
7. Recognized salaries and wages expense on December 7 of $20; paid in cash.
8. Collected accounts receivable on December 8, $7.
9. Paid accounts payable on December 9, $8.
10. 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:

1. Amortization for 2021, $1.
2. Supplies of $4 were counted on December 31, 2021.
3. Depreciation for 2021, $2.
4. Accrued interest of $1 on notes payable.
5. Salaries and wages incurred but not yet paid or recorded, $6.
6. Income tax expense for 2021 was $5 and will be paid in 2022.

Requirements:

General Journal tab - Prepare the journal entries to record the transactions (a) through (j). Review the accounts as shown in the General Ledger and Trial Balance tabs. Then prepare the necessary adjusting entries (k) through (p) to correctly report net income for the period. Then record the closing entry as of December 31.

General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances in the General Ledger.

Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the drop-down.

Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account based on your selection.

Statement of Retained Earnings tab - Prepare the statement of retained earnings for the year ended December 31, 2021.

Balance Sheet tab - Use the drop-down to select the accounts to properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection.

Analysis tab - Using the information from the requirements above, complete the 'Analysis' tab.