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 - 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 OUROOO0OU OOOOool $24 $24 Transactions during 2018 follow:

Answer 1

A DE Credit ($) Date a. Debit ($) $ 32 B Journal Entries Account Titles Cash Notes Payable (To record notes payable) Equipment Cash (To record equipment purchased) $ 32 b. | $ 35 $ 35 Cash $ 6 d. $ 2 $ 57 $ 66 Common Stock (To record additional investment) Software Cash (To record purchase of software) Supplies Accounts Payable (To record supplies purchased) Cash Accounts Receivable Service Revenue (To record serivces provided) Salaries and Wages Expense Cash (To record salaries paid) Cash Accounts Receivable (To record cash received) Accounts Payable Cash (To record cash paid) Cash Deferred Revenue (To record cash received in advance) $ 40 $ 40 h. 9 29 2

K L M I l I a 1. 2 Credit ($) Date Credit ($) Date k. Debit ($) $ 66 $ 66 1. 2 $ 60 8 N Closing Journal Entries Account Titles Service Revenue Income Summary (To close revenue accounts) Income Summary Depreciation Expense Amortization Expense Salaries and Wages Expense Supplies Expense Interest Expense Income Taxes Expense |(To close expense accounts) Income Summary Retained Earnings (To close net income) m. LJ Adjusting Journal Entries Account Titles Debit ($) Amortization Expense $ 1 Accumulated Amortization (To record amortization expense) Supplies Expense $ 8 Supplies (To record supplies used) Depreciation Expense Accumulated Depreciation (To record depreciation expense) Interest Expense $ 1 Interest Payable (To record interest expense) Salaries and Wages Expense Salaries and Wages Payable (To record salaries accrued) Income Taxes Expense 3 Income Taxes Payable (To record income taxes accrued) 9 10 n. 3 11 12 13 14 15 16 17 18 19 20 21

1 Account Titles 2 B C D E F G H I Unadjusted T/B Adjustments Adjusted T/B Post Closing T/B Debit ($) Credit ($) Debit ($) Credit ($) | Debit ($) Credit ($) Debit ($) Credit ($) $ 25 $ 25 $ 25 $ 3 $ 3 $ 31 $ 10 $ 8 $ 2 $ 2 $ 43 $ 43 $ 43 $ 1] | $ 31 $ 40 $ 4| $ 8 $ 8 $ 8 $ 1 $ 1 $ 2 $ 2 $ 4 $ 4 $ 4 $ 32 $ 32 $ 32 $ 4 $ 4 $ 1 $ 1 $ 1 $ 3 $ 3 $ 2 2 2 $ 18 $ 18 $ 18 $ 5 $ 5 $ 11 $ 66 $ 66 3 $ 3 $ 1TT $ 40 $ 44 $ - $ 8 $ . | $ - $ 3 $ 3 $ - 3 Cash 4. Accounts Receivable 5 Supplies 6 Equipment 7 Accumulated Depreciation 8 Software 9 Accumulated Amortization 10 Accounts Payable 11 Notes Payable (short - term) 12 Salaries and Wages Payable 13 Interest Payable 14 Income Taxes Payable 15 Deferred Revenue 16 Common Stock 17 Retained Earnings 18 Service Revenue 19 Depreciation Expense 20 Amortization Expense 21 Salaries and Wages Expense 22 Supplies Expense 23 Interest Expense 24 Income Taxes Expense 1 25 26 Total $ 129 $ 129 $ 20 $ 20 $ 141$ 141 $ 81 $ 81 27

66 66 NORTHLAND PHYSICAL THERAPY Income Statement for the year ended December 31, 2018 (in thousand) 5 Revenue 6 Service Revenue $ 7 Total Revenue $ 8 Less: Expenses 9 Depreciation Expense $ 10 Amortization Expense $ Salaries and Wages Expense $ Supplies Expense 13 Interest Expense $ 14 Income Taxes Expense $ 15 Total Expenses $ 16 Net income $ 3 1 44 3 60 6 17 NORTHLAND PHYSICAL THERAPY Statement of Retained Earnings for the year ended December 31, 2018 (in thousand) 22 Retained Earnings, January 1, 2018 $ 23 Add: Net Income $ 24 Retained Earnings, December 31, 2018 $ 6 11 25

u AWN Assets 4 32 6 Current Assets 7 Cash 8 Accounts Receivable 9 Supplies 10 11 o P Q NORTHLAND PHYSICAL THERAPY Balance Sheet as on December 31, 2018 (in thousands) Liabilities and Stockholder's Equity Current Liabilities $ 25 Accounts Payable $ $ 3 Notes Payable (short - term) $ $ 2 Salaries and Wages Payable Interest Payable Income Taxes Payable $ Deferred Revenue $ $ 30 Total Current Liabilities $ Stockholder's Equity $ 43 Common Stock $ $ 4 $ 39 Retained Earnings $ $ 8 $ 2 $ 6 Total Stockholder's Equity $ $ 75 Total Liabilities and Stockholder's Equity $ 1 3 2 46 12 18 11 13 Total Current Assets 14 Property, Plant and Equipment 15 Equipment 16 Less: Accumulated Depreciation 17 Software 18 Less: Accumulated Amortization 19 Total Assets 20 29 75

If you have any doubts ask in comments section

Do rate the answer