Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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, 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): Transactions during 2021 (summarized in thousands of dollars) follow: a. Borrowed $31 cash on July 1, 2021, signing a six-month note payable. b. Purchased equipment for $34 cash on July 2,2021 . c. Issued additional shares of common stock for $5 on July 3. d. Purchased software on July 4,$3 cash. e. Purchased supplies on July 5 on account for future use, $7. f. Recorded revenues on December 6 of $64, including $8 on credit and $56 recelved In cash. g. Recognized salaries and wages expense on December 7 of $39; paid in cash. h. Collected accounts recelvable on December 8,$9. 1. Paid accounts payable on December 9,$10. 1. Received a $3 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 $3 were counted on December 31,2021. m. Depreciation for 2021,$4. n. Accrued interest of $1 on notes payable. o. Salaries and wages incurred but not yet pald of recorded, $3. p. Income tax expense for 2021 was $4 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. repare an income statement. (Enter your answers in thousands of dollars.) Complete this qustion by entering your answers in the tabs below. Prepare the statement of retained earnings. (Enter your answers in thousands of dollars.) Required information Req 6A Req 6B Req 6C Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Assessment Manual For The Internal Audit Activity

Authors: The Internal Audit Foundation

2017 Edition

0894139975, 978-0894139970

More Books

Students also viewed these Accounting questions