[The following information applies to the questions displayed below.] Drs. Glenn Feltham and Gary Entwistle began operations of their physical therapy clinic called Northland Physical Therapy on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, was as follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Cash Debit $ 8 Credit Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Unearned Revenue Common Stock Retained Earnings Service Revenue Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense Totals 8446 9 $ 2 5 14 7 25000OOO $30 $30 Transactions during 2015 (summarized in thousands of dollars) follow: 1. Borrowed $18 cash on July 1, 2015, signing a six-month note payable. 2. Purchased equipment for $21 cash on July 1, 2015. 3. Issued additional shares of common stock for $4. 4. Earned revenues for 2015 of $53, Including $10 on credit and $43 received in cash. 5. Recognized salaries and wages expense for 2015 of $26; paid in cash. 6. Purchased software, $4 cash. 7. Collected accounts receivable, $7. 8. Purchased supplies on account for future use, $6. 9. Paid accounts payable, $8. 10. Received a $4 cash deposit from a hospital for a contract to start January 5, 2016. Data for adjusting journal entries: 11. Amortization for 2015, $2. 12. Supplies of $4 were counted on December 31, 2015. 13. Depreciation for 2015, $2. 14. Accrued Interest of $1 on notes payable. 15. Salaries and wages incurred not yet paid or recorded, $4. 16. Income tax expense for 2015 was $5 and will be paid in 2016. 6. value: 5.55 points 6-a. Prepare an income statement (Enter your answers in thousands of dollars.) NORTHLAND PHYSICAL THERAPY Income Statement (in thousands) 0 6-b. 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, 2015 Balance, December 31, 2015 $ 0 6-c. Prepare the balance sheet. (Enter your answers in thousands of dollars. Amounts to be deducted should be indicated by a minus sign) NORTHLAND PHYSICAL THERAPHY Balance Sheet (in thousands) 0 0 Equipment 0 Software 0 0 0 $ 0 7. Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) View transaction list Journal entry worksheet < 1 Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal 8. value: 5.55 points 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-Equipment Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Unearned 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 9. value: 5.60 points 9-a. How much net income did the physical therapy clinic generate during 2015? (Enter your answers in thousands of dollars.) Net Income 9-b. Is the business financed primarily by liabilities or stockholders' equity? Liabilities Stockholders' Equity 9-c. What is its current ratio? (Enter your answers in thousands of dollars.) Current Ratio Numerator Denominator