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: Debit Credit 56 2 2 8 $ 2 8 3 5 @ Account Titles 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 Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense Totals HODOUW DO $26 $26 Transactions during 2018 follow: a. Borrowed $16 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $19 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. Recorded revenues on December 6 of $50, including $9 on credit and $41 received in cash, 9. Recognized salaries and wages expense on December 7 of $24: paid in cash. h Collected accounts receivable on December 8, $8. 1. Pald 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, 2019 Data for adjusting journal entries on December 31: k. Amortization for 2018. $3. 1. Supplies of $2 were counted on December 31, 2018. m. Depreciation for 2018, $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 2018 was $3 and will be paid in 2019, 1, 3, 5 and B. Set up T-accounts for the accounts on the balanceEnter beginning balances and post the transactions to adjusting entries and closing entry Cash Accounts Receivable Beg BI Beg Ba End. B ERBI Supplies Equipment Beg BMI Beg Bm Tend. End, Bal Accumulated Depreciation Beg Bal Software End. Bal End. Bal Accumulated Amortization Bog. BH Accounts Payable Bea End. Bal. End Ball Notes Payable Salaries and Wages Payable Beg Ba Bela End. Bal. End. Ba Interest Payable Income Tax Payable Beg BRI Beg B End. Bal. Endal Deferred Revenue Cam Stoc Bern End Bal End. Bal Retained Earnings Service Reve Beg Bal End B End B Depreciation Expense Beg B Beg Bal End, at End. Bal Salaries and Wages En Bega End Dal O End. BI Beg.BE End Bal 5. Post the adjusting entries from requirement 4 and prepare an adjusted trial balance. NORTHLAND PHYSICAL THERAPY Adjusted Trial Balance (in thousands) Account Titles Debit Credit 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
