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 - 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 OUROOO0OU OOOOool $24 $24 Transactions during 2018 follow: Transactions during 2018 follow: a. Borrowed $32 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $35 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. f. Recorded revenues on December 6 of $66, including $9 on credit and $57 received in cash. g. Recognized salaries and wages expense on December 7 of $40; paid in cash. h. Collected accounts receivable on December 8, $8. i. Paid 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, $1. 1. Supplies of $2 were counted on December 31, 2018. m. Depreciation for 2018, $3. n. Accrued interest of $1 on notes payable. 0. Salaries and wages incurred but not yet paid or recorded, $4. p. Income tax expense for 2018 was $3 and will be paid in 2019. Required: 2. Record journal entries for transactions (a) through (j). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1, 3, 5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)-(j), adjusting entries (k)-(p), and closing entry. Cash Accounts Receivable Beg. Bal. Beg. Bal. | End. Bal. End. Bal. Supplies Equipment Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accumulated Depreciation Software Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accumulated Amortization Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Notes Payable Salaries and Wages Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Interest Payable Income Taxes Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Interest Expense Income Tax Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. 4. Record the adjusting journal entries (k) through (p). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Required information Debit Credit (in thousands) 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 Salaries and Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Totals Req 6A Req 6B Req 6C Prepare an income statement. (Enter your answers in thousar NORTHLAND PHYSICAL THERAPY Income Statement (in thousands) 6-a. Prepare an income statement. (values shown are "in thousands" so DO NOT add extra zeros) 6-b. Prepare the statement of retained earnings.(values shown are "in thousands" SO DO NOT add extra zeros) 6-c. Prepare the balance sheet. (values shown are "in thousands" so DO NOT add extra zeros) Complete this question by entering your answers in the tabs below. Req 6A Req 6B 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 Complete this question by entering your answers in the tabs below. Req 6A Req 6B Req 6C 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) Journal entry worksheet Record entry to close revenue and expense accounts to retained earnings. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
