[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 6448 9 5 10 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 $ 2 14 2500000170 ooooo $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. Pald 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. 1. value: 5.55 points Required: 2. Record journal entries for transactions (1) through (10). (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.) No Transaction General Journal 1 1 Cash Notes Payable (short-term) 2 2 Equipment Cash Debit Credit 18 18 21 21 3 3 Cash Common Stock 4 4 ' 4 4 Cash 43 Accounts Receivable Service Revenue 10 53 5 5 Salaries and Wages Expense 26 Cash 26 6 6 Software Cash 4 4 7 7 Cash 7 Accounts Receivable 7 8 8 Supplies Accounts Payable 6 6 9 9 Supplies 8 Accounts Payable 8 10 10 Cash 4 Unearned Revenue 2. value: 5.55 points 3,5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry. (Enter your answers in thousands of dollars.) Cash Accounts Receivable Beg. Bal. 8 Beg. Bal 1. 18 212 4. 10 77 3. 4 26 5 4. 43 46. 7. 7 End. Bal. 10. 4 End. Bal. 33 Beg. Bal 8. 9. End. Bal. Supplies Equipment 4 Beg. Bal. 6 2. 21 8 18 End. Bal. 30 Accumulated Depreciation Software Beg. Bal 2 Beg. Bal. 6. 4 End. Bal. 2 End. Bal. 9 Accumulated Amortization Beg. Bal Accounts Payable Beg. Bal. 5 68 89 End. Bal. 19 End. Bal. Notes Payable Salaries and Wages Payable Beg. Bal 0 Beg. Bal. 0 181 Notes Payable Beg. Bal. 0 Beg. Bal 18 1. End. Bal. Interest Payable Beg. Bal End. Bal. Salaries and Wages Payable 18 End. Bal. Income Taxes Payable Beg. Bal End. Bal. 0 Unearned Revenue Common Stock Beg. Bal 0 Beg. Bal 14 4 10. 43. End. Bal. 4 End. Bal. 18 Retained Earnings Service Revenue Beg. Bal 7 Beg. Bal 0 53 4. End. Bal. End. Bal. Income Tax Expense Amortization Expense Beg. Bal Beg. Bal. End. Bal. End. Bal. Interest Expense Depreciation Expense Beg. Bal Beg. Bal. End. Bal. End. Bal. 0 Salaries and Wages Expenses Supplies Expense Beg. Bal. Beg. Bal. 26 53 3. Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.) Answer is complete but not entirely correct. NORTHLAND PHYSICAL THERAPY Unadjusted Trial Balance At December 31, 2015 (in thousands) Account Titles Debit Credit Cash $ 33 Accounts Receivable 70 Supplies 18 Equipment 30 Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Unearned Revenue 2 9 2 19 18 0 0 0 4 18 7 Common Stock Retained Earnings Service Revenue 53 Salaries and Wages Expense 26 Supplies Expense 0 Depreciation Expense 0 Amortization Expense 0 Interest Expense 0 Income Tax Expense 0 Totals $ 123 S 123 4. value: 5.55 points 4. Record the adjusting journal entries (11) through (16). (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 2 3 4 5 6 Record the adjusting entry for amortization for 2015, $2. Note: Enter debits before credits. Transaction 11 General Journal Debit Credit Record entry Clear entry View general journal 5. value: 5.55 points 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 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 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