Reference no: EM131808741

Assignment

From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries.

The following information applies to the questions displayed below.

Drs. Glenn Feltham and Gary Entwistle began operations of their physical therapy clinic called Northland Physical Therapy on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, was as follows (the amounts are rounded to thousands of dollars to simplify):

Transactions during 2015 (summarized in thousands of dollars) follow:

1. Borrowed $18 cash on July 1, 2015, signing a six-month note payable.
2. Purchased equipment for $21 cash on July 1, 2015.
3. Issued additional shares of common stock for $4.
4. Earned revenues for 2015 of $53, including $10 on credit and $43 received in cash.
5. Recognized salaries and wages expense for 2015 of $26; paid in cash.
6. Purchased software, $4 cash.
7. Collected accounts receivable, $7.
8. Purchased supplies on account for future use, $6.
9. Paid accounts payable, $8.
10. Received a $4 cash deposit from a hospital for a contract to start January 5, 2016.

Data for adjusting journal entries:

11. Amortization for 2015, $2.
12. Supplies of $4 were counted on December 31, 2015.
13. Depreciation for 2015, $2.
14. Accrued interest of $1 on notes payable.
15. Salaries and wages incurred not yet paid or recorded, $4.
16. Income tax expense for 2015 was $5 and will be paid in 2016.

References Section BreakC4-3 From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries.

Required:

1. Record journal entries for transactions (1) through (10). (If no entry is required for atransaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.)

2. Record the borrowing $18 cash on July 1, 2015, signing a six-month note payable.