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 CreditCash $ 7Accounts Receivable 3Supplies 3Equipment 9Accumulated Depreciation $ 2Software 6Accumulated Amortization 2Accounts Payable 4Notes Payable (short-term) 0Salaries and Wages Payable 0Interest Payable 0Income Taxes Payable 0Deferred Revenue 0Common Stock 15Retained Earnings 5Service Revenue 0Depreciation Expense 0Amortization Expense 0Salaries and Wages Expense 0Supplies Expense 0Interest Expense 0Income Tax Expense 0Totals $ 28 $ 28Transactions during 2018 (summarized in thousands of dollars) follow:Borrowed $25 cash on July 1, 2018, signing a six-month note payable.Purchased equipment for $28 cash on July 2, 2018.Issued additional shares of common stock for $5 on July 3.Purchased software on July 4, $3 cash.Purchased supplies on July 5 on account for future use, $7.Recorded revenues on December 6 of $58, including $8 on credit and $50 received in cash.Recognized salaries and wages expense on December 7 of $33; paid in cash.Collected accounts receivable on December 8, $9.Paid accounts payable on December 9, $10.Received a $3 cash deposit on December 10 from a hospital for a contract to start January 5, 2019.Data for adjusting journal entries on December 31:Amortization for 2018, $2.Supplies of $3 were counted on December 31, 2018.Depreciation for 2018, $4.Accrued interest of $1 on notes payable.Salaries and wages incurred but not yet paid or recorded, $3.Income tax expense for 2018 was $4 and will be paid in 2019.how to record entry to close revenue and expense accounts to retained earnings?
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 $ 7
Accounts Receivable 3
Supplies 3
Equipment 9
Accumulated Depreciation $ 2
Software 6
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 15
Retained Earnings 5
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 $ 28 $ 28
Transactions during 2018 (summarized in thousands of dollars) follow:
Borrowed $25 cash on July 1, 2018, signing a six-month note payable.
Purchased equipment for $28 cash on July 2, 2018.
Issued additional shares of common stock for $5 on July 3.
Purchased software on July 4, $3 cash.
Purchased supplies on July 5 on account for future use, $7.
Recorded revenues on December 6 of $58, including $8 on credit and $50 received in cash.
Recognized salaries and wages expense on December 7 of $33; paid in cash.
Collected accounts receivable on December 8, $9.
Paid accounts payable on December 9, $10.
Received a $3 cash deposit on December 10 from a hospital for a contract to start January 5, 2019.
Data for adjusting journal entries on December 31:
Amortization for 2018, $2.
Supplies of $3 were counted on December 31, 2018.
Depreciation for 2018, $4.
Accrued interest of $1 on notes payable.
Salaries and wages incurred but not yet paid or recorded, $3.
Income tax expense for 2018 was $4 and will be paid in 2019.
how to record entry to close revenue and expense accounts to retained earnings?
Expert Answer
Want to see the step-by-step answer?
Related Accounting Q&A
Q: 1. Explain the total sales volume variance for a period. How can this total variance be decomposed?2...
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...
Q: Exercise 13-2The following are selected 2017 transactions of Shamrock Corporation. Sept. 1 Purchased...
A: 1.Prepare journal entries:
Q: I need help solving this problem. The picture attached is the information which was given. I copy an...
A: Statement of cost of goods manufactured: It is a statement which reports the detailed cost breakup o...
Q: The Selling Division’s unit sales price is $34 and its unit variable cost is $15. Its capacity is 11...
A: Opportunity: This is one of the factors of fraud triangle which explains about the chances an employ...
Q: Problem 9-3A Carla Vista Co. had the following assets on January 1, 2017. Item Cost Purchase...
A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income st...
Q: Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan f...
A: Once the production units are computed, the raw material purchases in pounds are determined. The pur...
Q: The management of Oriole Company asks your help in determining the comparative effects of the FIFO a...
A: Inventory: Inventory refers to the entire stock of goods purchased, goods utilized and goods maintai...
Q: Blossom Company estimates that 2020 sales will be $40000 in quarter 1, $48000 in quarter 2, and $580...
A: A merchandise purchases budget is a budgetary arrangement that reports the absolute appraisals expen...
Q: Platt Company produces one product, a putter called PAR –putter. Platt uses a standard cost system a...
A: Compute the predetermined variable overhead rate:
Q: 7LO 3Bank reconciliation Prepare a bank reconciliation as of October 31 from the following informati...
A: Bank Reconciliation statement identifies the difference between the cash balances as per Bank statem...
Q: Ivanhoe Company issued $459,000, 8%, 30-year bonds on January 1, 2017, at 103. Interest is payable a...
A: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by companies, universities...
Q: Brief Exercise 8-10 (Part Level Submission) During its first year of operations, Sandhill Co. had c...
A: When using the percentage of receivables allowance method, the credit balance in allowance for doubt...
Q: I need help finding the values for part 4 (cost of units started and completed in march) and part 5 ...
A: Equivalent Units of Production: It is an evaluation of the work completed during the period express...
Q: Total operating income variance means the difference between the actul operating inccome and the ope...
A: Click to see the answer
Q: Noah Yobs, who has $75,400 of AGI (solely from wages) before considering rental activities, has $67,...
A: We have solved part (a) as part (b) where it is asked to complete Form 1040 (page1) all the personal...
Q: On January 1, 2019, Bailey Industries had shares outstanding as follows.6% cumulative preference sha...
A: Earnings per share is a financial ratio that indicates a company’s ability to earn revenue for its c...
Q: Can you explain the solution below ? how did they calculate the sales revenue ? It doesn't make sens...
A: This budget can be understood in the following manner :
Q: The company received a bill for December’s utilities on January 5. The bill was for $235. So at 12...
A: Adjusting entries:Adjusting entries are made at the end of each accounting period, to record the rev...
Q: I'm having trouble finding the value for the inventory balance as of january 31st for the cost of fi...
A: Finished goods inventory are completely ready for sale after completing the manufacturing process.
Q: These transactions took place for Sheffield Corp. 2016 May 1 Received a $4,600, 12-month,...
A: The transactions can be journalized in the following manner :
Q: I need help solving this problem. The picture attached is the information which was given. I copy an...
A: Income Statement: It includes the total cost incurred by the business and revenue earned by the busi...
Q: Walt Bach Company has accumulated the following budget data for the year 2019. Sales: 40000 units, ...
A: Cost of goods sold alludes to the immediate costs inferable from the generation of the goods sold in...
Q: Cheyenne Corp. was organized on January 1, 2017. It is authorized to issue 21,000 shares of 7%, $53 ...
A: To get the balance of paid in capital, let us first put in the journal entries.The journal entries w...
Q: Affordable Lawn Care, Inc., provides lawn mowing services to both commercial and residential custome...
A: Prepare an income statement, statement of retained earnings and balance sheet of Incorporation A for...
Q: Basket purchase allocation Dorsey Co. has expanded its operations by purchasing a parcel of land wit...
A: a. Calculate the cost that should be recorded for the land.
Q: The following selected data were taken from the financial statements of Vidahill inc
A: Click to see the answer
Q: Andretti Company has a single product called a Dak. The company normally produces and sells 85,000 D...
A: Incremental cost: Incremental cost refers to the cost incurred in producing an additional unit, in o...
Q: The following information is available for Sandhill Co. for three recent fiscal years. 2017 ...
A: Inventory turnover: This is the ratio which analyzes the number of times inventory is sold during th...
Q: Which of the following is correct? The gain basis for property received by gift is the lesser of th...
A: The tax basis of inherited or gifted property: Various tax rules are given under Federal tax in orde...
Q: Montross Lumber processes wood to be shipped to construction companies. In order to keep its product...
A: Inspection cost: The inspection cost is the cost incurred to examine the quality of the products. I...
Q: Manahan Corporation received its August 31 bank statement showing total funds on deposit of $288,090...
A: a) Manahan's bank reconciliation statement as of August 31, 20X5 is as follows:
Q: I understand the accounting equation is: Liabilities + Stock Holders’ Equity = Assets How do you pre...
A: The basic Accounting Equation is Assets = Equity + LiabilitiesAssets are the resources owned by the...
Q: Why do prices at theme parks in Orlando, Florida, remain high despite seasonal and economic cyclical...
A: Besides Walt Disney, there are several amusement parks in Florida.Amusement parks see a great footfa...
Q: Hello, A task force of capital budgeting analysts at Morrison Ltd., collected the following data con...
A: The Net Present Value of the project has to be determined by deducting the present values of all inf...
Q: How is income defined by the IRC? For example, suppose you decided to hold a garage sale one fine su...
A: IRC or the Internal Revenue Code is a statutory tax law in the united states for domestic income. Th...
Q: Cost Estimation; High-Low Method; MAPE Horton Manufacturing Inc. produces blinds and other window tr...
A: High low methodThis method is used by companies to divide total cost into fixed cost part and variab...
Q: Cullumber Company markets CDs of numerous performing artists. At the beginning of March, Cullumber C...
A: Periodic Inventory System: Periodic Inventory System refers to the accounting system under which the...
Q: I've tried this problem twice and keep getting the wrong answer. The first time I did it I got 70,10...
A: Step 1: Prepare a schedule of change in current assets and current liabilities:
Q: At the beginning of 2018, Thompson Service, Inc., showed the following amounts in the stock-holders'...
A: Prepare journal entry for the given transactions (from January 3 to May 9).
Q: At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the v...
A: Fixed costs: Fixed costs are those costs which remain unchanged even there is a change in the produc...
Q: Problem 12-3Information concerning Marigold Corporation’s intangible assets is as follows. 1. On Jan...
A: The amount of franchise fees to be capitalised is Initial fees on signing - $16,000Add :Present Va...
Q: David Kelley is considering the implementation of an incentive wage plan to increase productivity in...
A: Definition and Goal Accomplishment Plan:Incentive wage is the income earned by the employees in case...
Q: FB Manufacturing Company is a partnership among Yolando Gonzalez, Willies Todd, and Linda Walkers. T...
A: Partnership: A partnership is that type of business in which two or more person share loss and profi...
Q: a. A new operating system for an existing machine is expected to cost $520,000 and have a useful lif...
A: We need to add back annual depreciation to after tac profits, so that we are able to determine the c...
Q: Ayayai Corp. has 4,200 shares of 8%, $100 par value preferred stock outstanding at December 31, 2017...
A: Dividend: Dividend refers to the payment made to the investor out of the profits earned by the busin...
Q: Bob and Ted are partners. Bob is a 70% partner and Ted is a 30% partner. They have decided to liquid...
A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed ...
Q: Handy Harvey is a leading global manufacturer and marketer of power tools, hardware, and home improv...
A: On dividend declaration date, the dividend payable liabilities arises and since dividend are declare...
Q: Brief Exercise 15-10Sweet Inc. declared a cash dividend of $2.2 per share on its 5 million outstandi...
A: Journal: Journal is the method of recording monetary business transactions in chronological order. I...
Q: Comprehensive Accounting Cycle Review 9-1 (Part Level Submission) Pina Colada Corp.’s unadjusted tr...
A: Explanation for the entry adjustmentDec 2- The Equipment cost including sales tax needs to be capita...
Q: Suppose your company sells services of $260 in exchange for $175 cash and $85 on account. Depreciati...
A: Journal entry: The record of business transactions in a chronological order in the journal using deb...