In: Accounting
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 Title | Debit | Credit | |
---|---|---|---|
Cash | $7 | ||
|
3 | ||
|
3 | ||
Equipment | 7 | ||
|
$2 | ||
Software | 6 | ||
|
2 | ||
|
5 | ||
|
0 | ||
|
0 | ||
|
0 | ||
|
0 | ||
|
0 | ||
|
15 | ||
|
2 | ||
|
0 | ||
|
0 | ||
|
0 | ||
|
0 | ||
|
0 | ||
|
0 | ||
|
0 | ||
Totals | 26 | 26 |
Transactions during 2018 (summarized in thousands of dollars) follow:
Data for adjusting journal entries on December 31:
>>> 1, 3, 5 and 8. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)-(j), adjusting entries (k)-(p), and closing entry. (Enter your answers in thousands of dollars.)
>>> Post the journal entries from requirement above to T-accounts and prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.)
Prepare journal entries as follows:
Trn. | Account Titles | Debit | Credit |
a) | Cash | $14 | |
Note payable (short-term) | $14 | ||
b) | Equipment | $17 | |
Cash | $17 | ||
c) | Cash | $5 | |
Common stock | $5 | ||
d) | Software | $3 | |
Cash | $3 | ||
e) | Supplies | $7 | |
Accounts payable | $7 | ||
f) | Cash | $39 | |
Accounts receivable | $8 | ||
Service revenue | $47 | ||
g) | Salaries and wages expense | $22 | |
Cash | $22 | ||
h) | Cash | $9 | |
Accounts receivable | $9 | ||
i) | Accounts payable | $10 | |
Cash | $10 | ||
j) | Cash | $3 | |
Deferred revenue | $3 |
_____________________________________________________
Post the above entries as follows:
________________________________________________________________
Prepare Unadjusted Trial Balance as follows:
____________________________________________________________________
Prepare adjusting entries as follows:
Trn. | Account Titles | Debit | Credit |
k) | Amortization expense | $2 | |
Accumulated amortization | $2 | ||
l) | Supplies Expense | $7 | |
Supplies [$10 - $3] | $7 | ||
m) | Depreciation expense | $4 | |
Accumulated depreciation | $4 | ||
n) | Interest Expense | $1 | |
Interest payable | $1 | ||
o) | Salaries and wages expense | $4 | |
Salaries and wages payable | $4 | ||
p) | Income tax expense | $4 | |
Income tax payable | $4 |