Question

[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): Debit Credit 00 + 700 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 Unearned Revenue Common Stock Retained Earnings Service Revenue Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense NOOOOOOO OOOOO Totals $29 $29 Transactions during 2015 (summarized in thousands of dollars) follow: 1. Borrowed $30 cash on July 1, 2015, signing a six-month note payable. 2. Purchased equipment for $33 cash on July 1, 2015. 3. Issued additional shares of common stock for $4. 4. Earned revenues for 2015 of $65, including $10 on credit and $55 received in cash. 5. Recognized salaries and wages expense for 2015 of $38; 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, $2. 16. Income tax expense for 2015 was $5 and will be paid in 2016.

Answer 1

Cash Accounts Receivable BB 77 33 2 38 5 46 89 Supplies 4 6 12 Accounts Payable ВВ 68

Accumulated Depreciation Equipment Software 2 BB 2 13 Income Tax Payable Unearned Revenue 0BB 5 16 BB 4 10

Notes Payable Service Revenue Amortization Expense Bво 2 CE CE Bв 30 1 OBB 65 4 11 30 Salaries & Wages Payable BB 2 15 Interest Expense Depreciation Expense CE BB 2 BB 14 13 Equipment Income Tax Expense BB 0 Supplies Expense BB 0 8 5 CE 6 CE BB 2 33 16 5 12

Interest Payable Accumulated Depreciation-Software 2 BB 2 11 о ВВ 1 14 Salaries & Wages Expense BB 0 40 CE 5 38 2 Common Stock Retained Earnings 14 BB BB 43

Adjusted Trial Balance 31-Dec-18 61 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Equipment Software Accumulated Depreciation-Software Accounts Payable Notes Payable Salaries & Wages Payable Interest Payable Income Tax Payable Unearned Revenue Common Stock Retained Earnings Service Revenue Salaries & Wages Expense Supplies Expense Depreciation Expense Amortization Expense Interest Expense Income Tax Expense Total 142 142