Check my work C4-3 Recording Transactions (Including Adjusting Journal Entries), Preparing Financial Statements and Closing Journal Entries, and Computing Net Profit Margin and Current Ratio (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, L 2 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 Caah Accounts Receivable 3 Supplies 3 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 $27 0 0 0 0 0 15 3 0 0 0 $27 Transactions during 2018 (summarized in thousands of dollars) follow. Check a. Borrowed $20 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $23 cash on July 2, 2018. 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 $53, including $8 on credit and $45 received cash. g. Recognized salaries and wages expense on December 7 of $28; paid in cash. h. Collected accounts receivable on December 8, $9. 1. Paid accounts payable on December 9, $10. J. Received a $3 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. 1. Supplies of $3 were counted on December 31, 2018 m. Depreciation for 2018, $4. 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 $4 and will be paid in 2019. (Enter all of your answers in thousands of dollars. (i.e., $100,000 should be entered as $100).) oints Journal entry worksheet eBook 8 17 Print Borrowed $20 cash on July 1, 2018, signing a six-month note payable. Record the transaction References Note: Enter debits before credits Data General Journal Credit Jul 01, 2018 Debit 17 Cash Notes Payable (short-term) 17 Record entry Clear entry View general joumal View transaction list ts Journal entry worksheet Book Purchased equipment for $23 cash on July 2, 2018. Record the transaction Print Terences Note: Enter debits before credits General Journal Credit Dato Jul 02, 2018 Equipment Cash Debit 20 20 Record entry Clear entry View general Journal View transaction list 10 bints Journal entry worksheet eBook 5 6 8 ... 17 Print Issued additional shares of common stock for $5 on July 3. Record the transaction. References Note: Enter debits before credits. Debit Credit Date Jul 03, 2018 General Journal Cash Common Stock 5 5 Record entry Clear entry View general Journal transaction/event, select "No journal entry required in the first account field.) entry required View transaction list 100 points Journal entry worksheet eBook 8 17 Purchased software on July 4, $3 cash. Record the transaction Print References Note: Enter debits before credits General Journal Date Jul 04, 2018 Debit Credit 3 Software Cash 3 Record entry Clear entry View general Journal 0 Ints View transaction list Journal entry worksheet eBook 2 . 17 Print Purchased supplies on July 5 on account for future use, $7. Record the transaction eferences Note: Enter debits before credits. Date General Journal Jul 05, 2018 Supplies Accounts Payable Debit Credit 7 7 View transaction list Journal entry worksheet ok 1 each account, based on your selection Post-closing 0 Assets Door Current Assets Cash Accounts Receivable Supplies NORTHLAND PHYSICAL THERAPY Balance Sheet At December 31, 2018 in thousand Lisbites Current Liabilities 25 Accounts Payable 2 Notes Payable (short-term 3 Salaries and Wages Payable 0 Interest Payable 0 Income Tax Payable 0 Deferred Revenue 2 17 (21) P 1 4 2 0 0 $ 0 30 Total Current Liabilities Stockholders' Equity Total Current Assets Equipment Accumulated Depreciation Equipment Software Accumulated Amortization Total Assets 5 28 (6) 5 9 (3) $ 22 0 0 4 0 6 58 100 points eBook General Statement of General Income Requirement Retained Journal Trial Balance Balance Sheet Ledger Analysis Statement Earnings Calculate the Net Pofit Margin and Current Ratio. Net income can be found on Income statement tab. (Hint: Select Adjusted on the dropdown.) Post-closing Dates: Jan 01, 2015 to: Dec 31, 2018 How much net income did Northland Physical Therapy, Inc., generate during 2018? What was ita net profit margin? (Round Not Profil Margin to decimal place Net Income $ Net Profit Margin 8.01% Print 4 References Is the company financed primarily by liabilities or stockholders' equity? Liabilities What is the current ratio? (Rourid your answer to 2 decimal placon) Current Ratio 0.97