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C4-3 (Algo) Recording Transactions (Including Adjusting Entries), Preparing Financial Statements and Closing Entries, General Ledger and Computing Net Profit Margin and Current Ratio (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 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 $ 6 Accounts Receivable 2 Supplies 2 Equipment 9 Accumulated Depreciation Software Accumulated Amortization 3 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 $ 27 $ 27 Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $19 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $22 cash on July 2, 2021. 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. Recorded revenues on December 6 of $53, including $9 on credit and $44 received in cash. g. Recognized salaries and wages expense on December 7 of $27; paid in cash. h. Collected accounts receivable on December 8, $8. 1. 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, 2022. Data for adjusting journal entries on December 31: k. Amortization for 2021, $3. Supplies of $2 were counted on December 31, 2021. m. Depreciation for 2021. $3. 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 $3 and will be paid in 2022 (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) Statement of General General Income Requirement Trial Balance Retained Analysis Journal Ledger Balance Sheet Statement Earnings Use the dropdowns to select the accounts properly included on the classified balance sheet. The unadjusted, adjusted, or appear for each account, based on your selection. Post-closing