Journal entry worksheet Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. 3. Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.) 1,3,5 and 8 . Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)- (). adjusting entries (k)(p), and closing entry. (Enter your answers in thousands of dollars.) 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet. Complete this question by entering your answers in the tabs below. Prepare an income statement. (Enter your answers in thousands of dollars.) Journal entry worksheet Record the borrowing $29 cash on July 1,2018 , signing a six-month note payable. Note: Enter debits before credits. [The following information applies to the questions displayed below] 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): Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $29 cash on July 1, 2018 , signing a six-month note payable. Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $29 cash on July 1,2018 , signing a six-month note payable. b. Purchased equipment for $32 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 $63, including $9 on credit and $54 received in cash. g. Recognized salaries and wages expense on December 7 of $37; paid in cash. h. Collected accounts receivable on December 8,$8. i. Paid accounts payble on December 9,$9. 1. Paid accounts payshble on December 9,$9. 1. 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,$1. 1. Supplies of $2 were counted on December 31, 2018. m. Depreciation for 2018,$3. n. Accrued interest of $1 on notes payable. o. Aalaries and wages incurred but not yet paid or recorded, $4. p. Income tax expense for 2018 was $3 and will be paid in 2019. Required: 2. Record journal entries for transactions (o) through (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) \begin{tabular}{|l|l|} \hline Equipment \\ \hline Accumulated Depreciation \\ \hline Accumulated Amortization \\ \hline Accounts Payable \\ \hline Notes Payable (Short-term) \\ \hline Salaries and Wages Payable \\ \hline Interest Payable & \\ \hline Income Taxes Payable \\ \hline Deferred Revenue & \\ \hline Common Stock & \\ \hline Retained Earnings & \\ \hline Service Revenue & \\ \hline Salaries and Wages Expense \\ \hline Supplies Expense & \\ \hline Depreciation Expense \\ \hline Amortization Expense \\ \hline Interest Expense & \\ \hline Income Tax Expense \\ \hline Totals \\ \hline \end{tabular} 8. Post the closing entry from requirement 7 and prepare a post-closing trial balance. (Enter your answers in thousands of dollars.) \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Retained Earnings } \\ \hline Beg. Bal. & & & \\ \hline & & & & \\ \hline & & & \\ \hline End. Bal. & & & \\ \hline & & & \\ \hline \end{tabular} Amortization Expense Income Tax Expense 9-a. How much net income did the physical therapy clinic generate during 2018 ? What was its net profit margin? 9-b. Is the business financed primarily by liabilities or stockholders' equity? 9c. What is its current ratio