Question

Post the journal entries to T-accounts and prepare an unadjusted trial balance

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	$	6
Accounts Receivable		2
Supplies		2
Equipment		9
Accumulated Depreciation				$	2
Software		7
Accumulated Amortization					2
Accounts Payable					4
Notes Payable (short-term)					0
Salaries and Wages Payable					0
Interest Payable					0
Income Taxes Payable					0
Deferred Revenue					0
Common Stock					16
Retained Earnings					2
Service Revenue					0
Depreciation Expense		0
Amortization Expense		0
Salaries and Wages Expense		0
Supplies Expense		0
Interest Expense		0
Income Tax Expense		0
Totals	$	26		$	26

Transactions during 2018 (summarized in thousands of dollars) follow:

1. Borrowed $23 cash on July 1, 2018, signing a six-month note payable.
2. Purchased equipment for $26 cash on July 2, 2018.
3. Issued additional shares of common stock for $6 on July 3.
4. Purchased software on July 4, $2 cash.
5. Purchased supplies on July 5 on account for future use, $8.
6. Recorded revenues on December 6 of $57, including $9 on credit and $48 received in cash.
7. Recognized salaries and wages expense on December 7 of $31; paid in cash.
8. Collected accounts receivable on December 8, $8.
9. Paid accounts payable on December 9, $9.
10. Received a $2 cash deposit on December 10 from a hospital for a contract to start January 5, 2019.

Data for adjusting journal entries on December 31:

11. Amortization for 2018, $2.
12. Supplies of $2 were counted on December 31, 2018.
13. Depreciation for 2018, $3.
14. Accrued interest of $1 on notes payable.
15. Salaries and wages incurred but not yet paid or recorded, $4.
16. Income tax expense for 2018 was $3 and will be paid in 2019.

3. Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.)

Post the journal entries to T-accounts and prepare an unadjusted trial balance

Answer 1

Northland Physical Therapy Journal entries No. Acccount Debit a Cash 23 Notes Payable (short-term) Credit Calculation b Equipment Cash c Cash Common stock d Software Cash e Supplies Accounts Payable f Cash Accounts Receivable Service revenue g Salaries & Wages expense Cash h Cash Accounts Receivable i Accounts Payable Cash j Cash Deferred revenue Adjusting JES k Amortisation expense Accumulated Amortisation =2+8-2 | Supplies expense Supplies m Depreciation expense Accumulated Depreciation n Interest expense Interest Payable o Salaries & Wages expense Salaries & Wages Payable p Income tax expense Income Tax Payable 57 Closing JES CE1 Service revenue Depreciation expense Amortisation expense Salaries & Wages expense Supplies expense Interest expense Income tax expense Retained Earnings

Credit Date Date Credit Date Debit Date Credit Debit Date Credit Accounts Receivable $ 2 $ 9h $ Debit Date Supplies $ 2 $ 8 Op bal Op bal e 8 $ $ $ 26 2 31 $ 8 Northland Physical Therapy T Accounts Date Debit Date Cash Op bal $ 6 $ 23 b $ 6d $ 48 $ 8 $ 2 Bal. $ 25 Equipment Op bal $ 9 $ 26 Bal. $ 35 Accounts Payable $ 9Op bal Bal. $ b 2 2 4 Bal. $ 3 Accum. Depr. - Equipment Op bal $ m $ $ Notes Payable (short-term) Op bal $ $ Bal. $ Deferred revenue Op bal $ Accum. Amortisation - Software Op bal $ $ Bal. $ Interest Payable Op bal $ - - $ $ $ 4 8 3 4 4 1 Bal. Income Tax Payable Op bal . $ $ $ Software 2 Op bal $ 7 3 d 5 Bal. $ Salaries & Wages Payable - Op bal $ 23 $ 23 Bal. $ Common Stock . Op bal $ $ Bal. $ Amortisation expenses $ 2 3 CE1 $ $ - Income tax expense $ 3CE1 $ $ - 2 16 6 22 Bal. $ Retained Earnings Op bal $ CE1 $ Bal. $ Salaries & Wages expense $ 31 $ 4 CE1 $ 2 5 7 3 2 $ 57 m Depreciation expense $ 3 CE1 $ CE1 2 35 Bal. Service revenue f $ 57 Bal. Supplies expense $ 8 CE1 $ . 0 Bal. $ - Bal. $ 8n Interest expense $ 1 1 CE1 CE1 $ - S 3 Bal. Bal.

Unadjusted TB Debit Credit Adjusted TB Debit Credit Post Closing TB Debit Credit Northland Physical Therapy Account Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Software Accumulated Amortisation Accounts Payable Notes Payable (short-term) Salaries & Wages Payable Interest Payable Income Tax Payable Deferred revenue Common stock Retained Earnings Service revenue Depreciation expense Amortisation expense Salaries & Wages expense Supplies expense Interest expense Income tax expense Totals Unw w 113 113 126 126 74 74