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Required information C4-3 (Algo) Recording Transactions (Including Adjusting Journal Entries), Preparing Financial Statements and Closing Journal Entries, and Computing Net Profit Margin and Current Ratio

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Required information C4-3 (Algo) Recording Transactions (Including Adjusting Journal Entries), Preparing Financial Statements and Closing Journal Entries, and Computing Net Profit Margin and Current Ratio (Chapters 2, 3, and 4) [LO 4-1 to LO 4-6] [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, 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): Trancactions durina 2021 (summarized in thousands of dollarel follow a. Borrowed $13 cash on July 1,2021 , signing a six-month note payable. b. Purchased equipment for $16 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. f. Recorded revenues on December 6 of $47, including $9 on credit and $38 recelved in cash. g. Recognized salaries and wages expense on December 7 of $21; paid in cash. h. Collected accounts recelvable 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. 1. 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, $4. p. Income tax expense for 2021 was $3 and will be paid in 2022 . Required: 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.) Prepare the statement of retained earnings. (Enter your answe Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.)

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