Question

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 $ 8 4 4 9 $ 1 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 YOOOOOOO оооооо $29 $29 Transactions during 2018 follow: a. Borrowed $21 cash on July 1, 2018, signing a six-month note payable. b. Purchased equipment for $24 cash on July 2, 2018 c. Issued additional shares of common stock for $4 on July 3. < Prey 9 of 9 Next > MacBook Pro

Answer 1

7) Closing Entries
Transaction	General Journal	Debit	Credit
1	Service Revenue	$56
	Income Summary		$56
	(To close revenue accounts)
2	Income Summary	$48
	Salaries and Wages Expense ($29 + $4)		$33
	Depreciation Expense		$2
	Amortization Expense		$1
	Supplies Expense ($4 + $6 - $4)		$6
	Interest Expense		$1
	Income Tax Expense		$5
	(To close expense accounts)
3	Income Summary ($56 - $48)	$8
	Retained Earnings		$8
	(To close the net income to retained earnings)