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 Credit $ 6 2 Account Titles Cash Accounts Receivable Supplies Equipment Accumulated Depreciation 2 1e $ 3 8 Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue 3 6 13 Common Stock Retained Earnings Service Revenue 3 Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense $28 $28 Totals

Answer 1

Transaction	General Journal	Debit	Credit
a.	Cash	$13
	Notes Payable		$13
	(To record cash borrowed by signing a six-month note payable)
b.	Equipment	$16
	Cash		$16
	(To record equipment purchased for cash)
c.	Cash	$6
	Common Stock		$6
	(To record common stock issued)
d.	Software	$2
	Cash		$2
	(To record software purchased)
e.	Supplies	$8
	Accounts Payable		$8
	(To record supplies purchased on account)
f.	Cash	$38
	Accounts receivable	$9
	Service Revenue		$47
	(To record revenue)
g	Salaries and wages expense	$21
	Cash		$21
	(To record salaries and wages expense paid)
h	Cash	$8
	Accounts receivable		$8
	(To record accounts receivable collected)
i	Accounts payable	$9
	Cash		$9
	(To record accounts payable paid)
j	Cash	$2
	Unearned revenue		$2
	(To record unearned revenue received)

Adjusting entries

Transaction	General Journal	Debit	Credit
k	Amortization expense	$3
	Accumulated amortization		$3
	(To record amortization)
l	Supplies expense (2+8-2)	$8
	Supplies		$8
	(To record supplies expense)
m	Depreciation expense	$3
	Accumulated depreciation		$3
	(To record depreciation expense)
n	Interest expense	$1
	Interest payable		$1
	(To record accrued interest)
o	Salaries and wages expense	$4
	Salaries and wages payable		$4
	(To record accrued salaries and wages)
p	Income tax expense	$3
	Income tax payable		$3
	(To record accrued income tax)