! Required information [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): Account Titles Cash Debit Credit $ 8 4 4 8 $ 2 5 2 5 0 0 0 0 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 14 6 0 0 0 0 0 0 0 $29 $29 Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $30 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $33 cash on July 2, 2018. c. Issued additional shares of common stock for $4 on July 3. d. Purchased software on July 4, $4 cash. e. Purchased supplies on July 5 on account for future use, $6. f. Recorded revenues on December 6 of $65, including $10 on credit and $55 received in cash. g. Recognized salaries and wages expense on December 7 of $38; paid in cash. h. Collected accounts receivable on December 8, $7. i. Paid accounts payable on December 9, j. Received a $4 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, $2. 1. Supplies of $4 were counted on December 31, 2018. m. Depreciation for 2018, $2. n. Accrued interest of $1 on notes payable. o. Salaries and wages incurred but not yet paid or recorded, $2. p. Income tax expense for 2018 was $5 and will be paid in 2019. View transaction list Journal entry worksheet 1 2 3 4 5 6 > Record the adjusting entry for amortization for 2018, $2. Note: Enter debits before credits. General Journal Debit Credit Transaction k. Record entry View general journal Clear entry View transaction list Journal entry worksheet Record the adjusting entry for supplies counted on December 31, 2018 for $4. Note: Enter debits before credits. General Journal Debit Credit Transaction I. Record entry View general journal Clear entry View transaction list Journal entry worksheet Record the adjusting entry for depreciation for 2018, $2. Note: Enter debits before credits. General Journal Debit Credit Transaction m. Record entry View general journal Clear entry View transaction list Journal entry worksheet Record the adjusting entry for accured interest for $1 on notes payable. Note: Enter debits before credits. General Journal Debit Credit Transaction n. Record entry View general journal Clear entry View transaction list Journal entry worksheet Record the adjusting entry for salaries and wages earned but not paid for $2. Note: Enter debits before credits. General Journal Debit Credit Transaction o. Record entry View general journal Clear entry View transaction list Journal entry worksheet Record the adjusting entry for income tax expense for 2018 for $5 that will be paid in 2019. Note: Enter debits before credits. General Journal Debit Credit Transaction p. Record entry View general journal Clear entry NORTHLAND PHYSICAL THERAPY Adjusted Trial Balance Credit (in thousands) Account Titles Debit 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 Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Totals $ 0 $ 0
