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 (the amounts are rounded to thousands of dollars to simplify): Debit $ 6 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 Coron Stock Retained Earnings Service Revenue Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense Totals 520

Answer 1

Date	Journal	Debit	Credit
		(In thousands)	(In thousands)
July 1,2018	Cash	13
	Note payable		13
	(Borrowed through note payable)
July 2,2018	Equipment	16
	Cash		16
	(Purchase of equipment)
July 3,2018	Cash	6
	Common stock		6
	(Issue of common stock)
July 4,2018	Software	2
	Cash		2
	(Purchase of software)
July 5,2018	Supplies	8
	Accounts payable		8
	(Purchase of supplies)
Dec. 6,2018	Cash	38
	Accounts receivable	9
	Service revenue		47
	(revenue recorded)
Dec. 7,2018	Salaries and wages expense	21
	Cash		21
	(Salaries paid)
Dec. 8,2018	Cash	8
	Accounts receivable		8
	(Accounts receivable collected)
Dec. 9,2018	Accounts payable	9
	Cash		9
	(Accounts payable paid)
Dec. 10,2018	Cash	2
	Deferred revenue		2
Adjusting entries
Dec. 31,2018	Amortization expense	3
	Accumulated amortization		3
	(Amortization accounted)
Dec. 31,2018	Supplies expense	8
	Supplies		8
	(Supplies consumed)
Dec. 31,2018	Depreciation expense	3
	Accumulated depreciation		3
	(Depreciation accounted)
Dec. 31,2018	Interest expense	1
	Interest payable		1
	(Accrued interest on notes payable accounted)
Dec. 31,2018	Salaries and wages expense	4
	Salaries and wages payable		4
	(Accrued salaries and wages expense accounted)
Dec. 31,2018	Income tax expense	3
	Income tax payable		3
	(Income tax expense accounted)

Cash
Beg.bal.	6
Note payable	13
Equipment		16
Common stock	6
Software		2
Sales	38
Salaries and wages expense		21
Accounts receivable	8
Accounts payable		9
Deferred revenue	2
End. Bal.	25

Accounts receivabe
Beg.bal.	2
Sales	9
		8
End. Bal.	3

Supplies
Beg.bal.	2
Accounts payable	8
Supplies expense		8
End. Bal.	2

Equipment
Beg.bal.	10
Cash	16	0
End. Bal.	26

Accumulated depreciation
Beg.bal.	-	3
Depreciation expense		3
End. Bal.		6

Software
Beg.bal.	8	0
Cash	2
End. Bal.	10

Accumulated amortization
Beg.bal.		3
Amortization expense		3
End. Bal.	-	6

Accounts payable
Beg.bal.		6
Supplies		8
Cash	9
End. Bal.		5

Notes payable (short term)
Beg.bal.	-
Cash		13
End. Bal.		13

Salaries and wages payable
Beg.bal.	0
Salaries and wages expense		4
End. Bal.		4

Interest payable
Beg.bal.	-
Interest expense		1
End. Bal.		1

Deferred revenue
Beg.bal.	0
Cash		2
End. Bal.		2

Common stock
Beg.bal.	-	13
Cash		6
End. Bal.		19

Retained earnings
Beg.bal.	0	3
End. Bal.		3

Service revenue
Beg.bal.	-
Cash		38
Accounts receivable		9
End. Bal.		47

Salaries and wages expense
Beg.bal.		0
Cash	21
Salaries and wages payable	4
End. Bal.	25

Service revenue
Beg.bal.	-
Cash		38
Accounts receivable		9
End. Bal.		47

Salaries and wages expense
Beg.bal.		0
Cash	21
Salaries and wages payable	4
End. Bal.	25

Supplies expense
Beg.bal.
Supplies	8	-
End. Bal.	8

Depreciation expense
Beg.bal.
Accumulated depreciation	3	0
End. Bal.	3

Amortization expense
Beg.bal.
Accumulated amortization	3	-
End. Bal.	3

Interest expensee
Beg.bal.
Interest payable	1	0
End. Bal.	1

Income tax expense
Beg.bal.
Income tax payable	3
End. Bal.	3

Income tax payable
Beg.bal.
Income tax expense		3
End. Bal.		3