Question

(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): Account Titles Debit Credit Cash Accounts Receivable Supplies Equipment Accumulated Depreciation $ 6 2 10 $3 Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings 8 6 13 Service Revenue Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense Totals $26 $28

Answer 1

Cash a/c
Beginning balance	6 $	By, equipment	16 $
To, notes payable	13 $	By, software	2 $
To, common stock	6 $	By, salaries and wages	21 $
To, revenue	38 $	By, accounts payable	9 $
To, accounts receivable	8 $
To, deferred revenue	2 $
		Ending Balance	25 $

Accounts Receivable a/c
Beginning balance	2 $	By, cash	8 $
To, revenue	9 $
		Ending Balance	3 $

Supplies a/c
Beginning balance	2 $	Supplies expense	8 $
To, accounts payable	8 $
		Ending Balance	2 $

Equipment a/c
Beginning balance	10 $
To, cash	16 $
		Ending Balance	26 $

Accumulated Depreciation a/c
		Beginning balance	3 $
		Depreciation expense a/c	3 $
Ending Balance	6 $

Software a/c
Beginning balance	8 $
To, cash	2 $
		Ending Balance	10 $

Accumulated Amortisation a/c
		Beginning balance	3 $
		Amortisation expense a/c	3 $
Ending Balance	6 $

Accounts payable a/c
To, cash a/c	9 $	Beginning balance	6 $
		By, supplies	8 $
Ending Balance	5 $

Note payable a/c
		By, cash	13 $
Ending Balance	13 $

Salaries and wages payable a/c
		Salaries and wages expense	4 $
Ending Balance	4 $

Interest payable a/c
		Interest expense	1 $
Ending Balance	1 $

           

Income tax payable a/c
		Income tax expense	3 $
Ending Balance	3 $

Deferred revenue a/c
		By, cash a/c	2 $
Ending Balance	2 $

Common stock a/c
		Beginning balance	13 $
		By, cash	6 $
Ending Balance	19 $

Retained Earning a/c
		Beginning balance	3 $
Ending Balance	3 $

Service Revenue a/c
		By, cash a/c	38 $
		By, accounts receivable	9 $
Ending Balance	47 $

Depreciation expense a/c
Accumulated Depreciation a/c	3 $
		Ending Balance	3 $

Amortisation expense a/c
Accumulated Amortisation a/c	3 $
		Ending Balance	3 $

Salaries and wages expense a/c
To, cash	21 $
Salaries and wages payable a/c	4 $
		Ending Balance	25 $

Supplies expense a/c
To, supplies	8 $
		Ending Balance	8 $

Interest expense a/c
Interest payable a/c	1 $
		Ending Balance	1 $

Income tax expense a/c
Income tax payable a/c	3 $
		Ending Balance	3 $