I need help. I keep trying to post the T accounts and the unadjusted and adjusted trial balances. I can’t get either trial balance to equal. I believe I have my journal entries correct.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 TitlesDebitCreditCash$6    Accounts Receivable 2    Supplies 2    Equipment 10    Accumulated Depreciation   $3 Software 8    Accumulated Amortization    3 Accounts Payable    6 Notes Payable (short-term)    0 Salaries and Wages Payable    0 Interest Payable    0 Income Taxes Payable    0 Deferred Revenue    0 Common Stock    13 Retained Earnings    3 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 $13 cash on July 1, 2018, signing a six-month note payable.Purchased equipment for $16 cash on July 2, 2018.Issued additional shares of common stock for $6 on July 3.Purchased software on July 4, $2 cash.Purchased supplies on July 5 on account for future use, $8.Recorded revenues on December 6 of $47, including $9 on credit and $38 received in cash.Recognized salaries and wages expense on December 7 of $21; paid in cash.Collected accounts receivable on December 8, $8.Paid accounts payable on December 9, $9.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:Amortization for 2018, $3.Supplies of $2 were counted on December 31, 2018.Depreciation for 2018, $3.Accrued interest of $1 on notes payable.Salaries and wages incurred but not yet paid or recorded, $4.Income tax expense for 2018 was $3 and will be paid in 2019.Record journal entries for transactions (a) through (j).Cash                                                      13   Notes-payable (short term)                     13 Equipment                                          16   Cash                                                                   16 Cash                                                      6   Common Stock                                              6 Software                                             2   Cash                                                                   2 Supplies                                               8   Accounts Payable                                        8 Accounts Receivable                       9Cash                                                      38   Service Revenue                                           47 Salaries and Wages Expense       21   Cash                                                                   21 Cash                                                      8   Accounts Receivable                                   8 Accounts Payable                             9   Cash                                                                   9 Cash                                                      2   Deferred Revenue                                       2 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.Prepare an unadjusted trial balance and a trial balance.

Question
Asked Nov 22, 2019
14 views

I need help. I keep trying to post the T accounts and the unadjusted and adjusted trial balances. I can’t get either trial balance to equal. I believe I have my journal entries correct.

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

 

10

 

 

 

 

Accumulated Depreciation

 

 

 

$

3

 

Software

 

8

 

 

 

 

Accumulated Amortization

 

 

 

 

3

 

Accounts Payable

 

 

 

 

6

 

Notes Payable (short-term)

 

 

 

 

0

 

Salaries and Wages Payable

 

 

 

 

0

 

Interest Payable

 

 

 

 

0

 

Income Taxes Payable

 

 

 

 

0

 

Deferred Revenue

 

 

 

 

0

 

Common Stock

 

 

 

 

13

 

Retained Earnings

 

 

 

 

3

 

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:

  1. Borrowed $13 cash on July 1, 2018, signing a six-month note payable.
  2. Purchased equipment for $16 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 $47, including $9 on credit and $38 received in cash.
  7. Recognized salaries and wages expense on December 7 of $21; 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:

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

Record journal entries for transactions (a) through (j).

Cash                                                      13

   Notes-payable (short term)                     13

 

Equipment                                          16

   Cash                                                                   16

 

Cash                                                      6

   Common Stock                                              6

 

Software                                             2

   Cash                                                                   2

 

Supplies                                               8

   Accounts Payable                                        8

 

Accounts Receivable                       9

Cash                                                      38

   Service Revenue                                           47

 

Salaries and Wages Expense       21

   Cash                                                                   21

 

Cash                                                      8

   Accounts Receivable                                   8

 

Accounts Payable                             9

   Cash                                                                   9

 

Cash                                                      2

   Deferred Revenue                                       2

 

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.

Prepare an unadjusted trial balance and a trial balance.

 

 

check_circle

Expert Answer

Step 1

Following are the T-account for the account on Trial balance.

help_outline

Image Transcriptionclose

Cash Particulars Equipment Software Amount (S) Particulars Amount (S) Beginning balance Note payable 6 16 13 2 Salaries and Wages Account payable Closing Balance Common Stock 6 21 Account Receivable Deferred Revenue Service Revenue 8 9 2 25 38 Account Receivable Particulars Particulars Amount (S) Amount (S) Beginning balance Service Revenue Cash 2 Closing Balance 9 3 Supplies Particulars Beginning balance Account Payable Particulars Supplies Expense Closing Balance Amount (S) Amount (S) 2 Equipment Amount (S) Amount (S) Particulars Particulars Beginning balance Closing Balance 10 26 Cash 16 Accumulated Depreciation Amount (S) Particulars Amount (S) Particulars Beginning balance Depreciation Expense Closing Balance 6 3

fullscreen
Step 2

T-account for the account on Trial balance:

help_outline

Image Transcriptionclose

Software Particulars Amount ($) Amount (S) Particulars Beginning balance 8 Closing Balance Cash 2 10 Accumulated Amortization Amount (S) Amount (S) Particulars Particulars Beginning balance Amortization Expense 3 Closing Balance 6 Account Payable Particulars Beginning balance Supplies Amount (S) Particulars Amount (S) Cash 6 Closing Balance 5 Note payable Particulars Amount (S) Particulars Beginning balance Amount (S) 0 Closing Balance 13 Cash 13 Salaries and wages payable Amount (S) Amount (S) Particulars Particulars Beginning balance Salaries & wages expense Closing Balance 0 4 Interest Payable Particulars Particulars Beginning balance Interest Expense Amount (S) Amount (S) 0 Closing Balance 1 1

fullscreen
Step 3

T-account for the account...

help_outline

Image Transcriptionclose

Income Taxes Payable Amount (S) Amount (S) Particulars Particulars Beginning balance Income tax expense 0 Closing Balance Deferred Revenue Particulars Amount (S) Amount (S) 0 Particulars Beginning balance Cash Closing Balance Common Stock Amount (S) 13 Amount (S) Particulars Particulars Beginning balance Cash Closing Balance 19 6 Retained Earnings Particulars Closing Balance Amount (S) Particulars Amount (S) 3 Beginning balance Service Revenue Particulars Amount (S) Particulars Beginning balance Cash Account receivable Amount (S) 0 38 Closing Balance 47

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

Other

Related Accounting Q&A

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

Q: Coronet Company provided the following information related to its inventory sales and purchases for ...

A: In order to calculate budgeted purchases, we need ending inventory and beginning inventory, these ar...

question_answer

Q: Sage Hill Industries has the following patents on its December 31, 2019, balance sheet. Patent ...

A: A) Calculate the total carrying amount of patent on December 31, 2019.

question_answer

Q: In the 2018 tax year, Michelle paid the following amounts relating to her 2016 tax return: Tax defic...

A: Income tax: Income tax refers to the direct tax levied on individual person or business and collecte...

question_answer

Q: Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of th...

A: Hence, $108 is the unit variable cost of goods manufactured. It is obtained by the division of varia...

question_answer

Q: Variable Costing Marley Company has the following information for March: Sales $912,000 Variable cos...

A: Hence, for the month of March, $438,000 is the manufacturing margin. It is the difference in net sal...

question_answer

Q: Analyze Yum! Brands by segment Yum! Brands, Inc. (YUM) is a worldwide operator and franchisor of fas...

A: Click to see the answer

question_answer

Q: The following production data were taken from the records of the Finishing Department for June: I...

A: Equivalent Units of Production: Equivalent units of production are the work done by a manufacturer o...

question_answer

Q: E 2-5 Calculate income and investment balance allocation of excess to undervalued assets Pop Comp...

A: Share of income refers to the part of the total income received. Income is the amount of profit earn...

question_answer

Q: Variable Costing Income Statement for a Service Company The actual and planned data for Underwater U...

A: Variable Costing:Variable costing is the method that is used by the management for decision making p...