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 Debit Credit Cash Accounts Receivable Supplies Equipment Accumulated $ 8 4 4 $ 2 Depreciation Software 5 Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable 2 5 0 0 0 0 Deferred Revenue 0 Common Stock 14 Retained Earnings Service Revenue 7 0 Depreciation Expense Amortization Expense Salaries and Wages 0 Expense Supplies Expense Interest Expense 0 0 0 Income Tax Expense $30 $30 Totals Transactions during 2018 (summarized in thousands of dollars) follow: a. Borrowed $18 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $21 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 $53, including $10 on credit and $43 received in cash g. Recognized salaries and wages expense on December 7 of $26; paid in cash h. Collected accounts receivable on December 8, $7 i. Paid accounts payable on December 9, $8 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 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, $4. p. Income tax expense for 2018 was $5 and will be paid in 2019. 1, 3, 5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)-i) adjusting entries (k)-(p), and closing entry. (Enter your answers in thousands of dollars.) Cash Accounts Receivable Beg. Bal 8 Beg. Bal 4 7 (h) (a) (c) (f) |(h) U) 21 (b) (f) 18 10 4 (d) 4 26 (g) 43 8 (i) 7 End. Bal. 7 4 End. Bal 25 Supplies Equipment Beg. Bal 4 Beg. Bal (b) () 2 (1) 21 End. Bal 30 End. Bal. Accumulated Depreciation Software 2 Beg. Bal 5 |Beg. Bal 2 (m) (d) 4 End. Bal End. Bal 4 9 Accounts Payable Accumulated Amortization Beg. Bal Beg. Bal 2 5 2 (k) (i) 6 (e) 8 End. Bal 4 End. Bal Notes Payable Salaries and Wages Payable Beg. Bal Beg. Bal 0 0 18 (a) 4 (o) End. Bal 18 End. Bal. 4 Interest Payable Income Taxes Payable Beg. Bal 10 Beg. Bal 0 5 (p) 1 (n) Deferred Revenue Common Stock Beg. Bal 0 |Beg. Bal 14 4 (j) 4 (c) End. Bal 4 End. Bal 18 Retained Earnings Service Revenue Beg. Bal. Beg. Bal 7 0 53 CE1 End. Bal. End. Bal. 60 0 Amortization Expense Depreciation Expense Beg. Bal Beg. Bal End. Bal End. Bal 0 Salaries and Wages Expense Supplies Expense eg. Bal. Beg. Bal 5. Post the adjusting entries from requirement 4 and prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) NORTHLAND PHYSICAL THERAPY Adjusted Trial Balance (in thousands) Account Titles Debit Credit Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense 0$ $ 0 Totals 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. Req 6B Req 6A Req 6C Prepare an income statement. (Enter your answers in thousands of dollars.) NORTHLAND PHYSICAL THERAPY Income Statement (in thousands) Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense 0$ $ 0 Totals 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. Req 6B Req 6A Req 6C Prepare an income statement. (Enter your answers in thousands of dollars.) NORTHLAND PHYSICAL THERAPY Income Statement (in thousands) 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. Req 6A Req 6B Req 6C Prepare an income statement. (Enter your answers in thousands of dollars.) NORTHLAND PHYSICAL THERAPY Income Statement (in thousands) 0 0 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. Req 6B Req 6A Req 6C Prepare the statement of retained earnings. (Enter your answers in thousands of dollars.) NORTHLAND PHYSICAL THERAPY Statement of Retained Earnings (in thousands) Balance, January 1, 2018 Balance, December 31, 2018 KReq 6A Req 6C Complete this question by entering your answers in the tabs below. Req 6B Req 6C Req 6A Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.) NORTHLAND PHYSICAL THERAPY Balance Sheet (in thousands) 0 0 0 0 0 0 8. Post the closing entry from requirement 7 and prepare a post-closing trial balance. (Enter your answers in thousands of dollars.) NORTHLAND PHYSICAL THERAPY Post-Closing 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 $ 0 Totals 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? 9-c. What is its current ratio? Complete this question by entering your answers in the tabs below. Req 9A Req 9B Req 9C Is the business financed primarily by liabilities or stockholders' equity? Stockholders' Equity Liabilities KReq 9A Req 9C 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? 9-c. What is its current ratio? Complete this question by entering your answers in the tabs below. Req 9A Req 9C Req 9B What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Numerator Denominator