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 post the adjusted trial balance

Question
Asked Feb 12, 2019
87 views

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 post the adjusted trial balance

check_circle

Expert Answer

Step 1
 Journal Entries for transactions in 2018Amounts in $'000 
DateParticularsDr.Cr.
7/1Cash $25 
 to Notes payable (Short term) $25
    
7/2Equipment $28 
 to cash  $28
    
7/3Cash $5 
 to Common stock  $5
    
7/4Software $3 
 to cash  $3
    
7/5Supplies $7 
 to Account payables  $7
    
12/6Cash $50 
 Accounts receivable $8 
 to Service Revenue  $58
    
12/7Salaries and wages expense$33 
 to cash $33
    
12/8Cash $9 
 to accounts receivable $9
    
12/9Accounts payable $10 
 to cash  $10
    
12/10cash $3 
 to deposits (liability) $3
    
 ADJUSTMENT ENTRIES  
    
12/31ammortization expense $2 
 to accumulated ammortization  $2
    
12/31Supplies expense $7 
 to supplies  $7
    
12/31depreciation expense$4 
 to accumulated depreciation $4
    
12/31Interest expense$1 
 to Interest payable $1
    
12/31salaries and wages expense$3 
 to Salaries and wages payable $3
  &nb...
fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Final Accounts for Companies

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: I need help solving this, thanks!

A: Break-even sales: Break-even sales is that level of sales at which there is no profit or no loss on ...

question_answer

Q: Role of Accounting

A: Accounting: Accounting is a process of collecting and organizing financial transactions, analyzing, ...

question_answer

Q: On January 1, 2017, Windsor, Inc. had these stockholders’ equity balances. Common Stock, $1 par (...

A: The Equity section is divided into several sub-parts like paid in capital, additional paid in capita...

question_answer

Q: Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose i...

A: Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want an...

question_answer

Q: (Adjusting Entry for Sales Tax and VAT) Eastwood Ranchers sells a herd of cattle to Rozo Meat Packer...

A: Calculate the value added tax (VAT) of Company R.

question_answer

Q: Problem 25-3A Computation of cash flows and net present values with alternative depreciation methods...

A: Net present value method: Net present value method is the method which is used to compare the initia...

question_answer

Q: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall ...

A: Asset Turnover ratio: It is an efficacy ratio which measure the value of Companies sales in comparis...

question_answer

Q: I'm not sure how to come up with the missing numbers .  Exercise 2-14 Complete each of the followin...

A: Contribution format income statementContribution format income statement highlights the cost behavio...

question_answer

Q: Hello, Romano corp has 3 operating divisions and requires a 13% rate of return on all investments.  ...

A: Calculate operating assets:Operating assets = (operating income – Residual income) × (100 / 13)Opera...