accounting homework help

Chapter 4,5, and 13 Homework lnstrudlons Ihelp

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C4-3 From Recording Transactions Qncludlng Adjusting Journal Entries) to Preparing Flnanclal statements and

Closing Journal Entries (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, LO 4-5,LO 4-6)

Ors. Glenn Feltham and Gary Entwistle began operations of their physical therapy clinic called Northland Physical Therapy on January 1, 2011. The annual reporting period ends December 31. The trial balance on January 1, 2012, was as follows (the amounts are rounded to thousands of dollars to simplify):

Account Title:; Debit Credit

Cash s 7

Accounts Receivable 3

Supplies 3

Totals $25 $25

Transactions during 2012 (summarized in thousands of dollars) follow:

a. Borrowed $20 cash on July 1, 2012. signing a six-month note payable.

b. Purchased equipment for $23 cash on July 1,2012.

c. .Issued additional shares of stock for SS.

d. Earned revenues for 2012 of $53, including SB on credit and 545 received In cash.

e. Recognized wages expense for 2012 of $28, paid in cash.

f. Purchased other noncurrent assets, $3 cash.

g,Collected accounts receivable. $9.

h. Purchased supplies on account for future use, $7.

i. Paid accounts payable,$10.

j. . Received a SJ deposit from a hospital for a contract to start January 5, 2013.

k. Declared and paid a cash dividend, $4.

Data for adjusting journal entries:

I. Supplies of $3 were counted on December 31, 2012.

m. Depreciation for 2012, $4.

n. Accrued interest of $1 on notes payable.

o. Wages Incurred not yet paid or recorded, 54.

p. Income tax expense for 2012 was S4, and will be paid in 2013.

Required:

1. Set up T-accounts for the accounts on the trial balance and enter beginning balances . {Enter your

answers in thousands of dollars.)

Cash Accounts Receivable

Beg. Bal. Beg. Bal.

End. Bal.

End. Bal.

Supplies Equipment

Beg.Bal Beg. Bal.

End. Bal. End.Bal.

Accumulated Depreciation Other Noncurrent Assets Beg.Bal. Beg. Bal.

End.Bal. End. Bal.

Beg. Bal.

Acc ounts Payable Notes Payable

Beg.Bal.

I

I

End.Bal. End Bal.

Wages Payable Interest Payable

Beg.Bal. Beg.Bal.

End.Bal. End.Bal.

Income Taxes Payable Unearned Revenue

Beg Bal. Beg. Bal.

End.Bal. End.Bal.

Contributed Capital Retained Earnings

Beg.Bal. Beg. Bal.

I

End. Bal. End.Bal.

Dividends Declared Service Revenue

Beg.aaJ. Beg Bal.

End. Bal End.Bal.

Income Tax Expense Interest Expense

Beg.Bal. Beg. Bal.

E'ld Bal. End. Bal.

Depreciation Expense Wages Expenses

Be9. Bal. Beg . Bal.

E,,c 3al. End. Bal.

Beg.Bal

End Bal

Supplies Expense

2. Record journal entnes for transactions (a) through (k), and post them to the T-accounts . (If no entry Is required for a transaction/event, select "No Journal Entry Required" In the first account field. Enter your answers in thousands of dollars.)

vi vtnn transaction list x

Transaction

1. Record the borrowing $20 cash on July 1, 2012, signing a six-month note payable.

2. Record the purchase of equipment for $23 cash on July 1, 2012.

3. Record the issuance of additional shares of stock for $5.

4. Record the entry for revenues for 2012 of S53, Including

$8 on credit and $45 received in cash.

5. Record wages expense for 2012 of $28, paid In cash.

6. Record the purchase of other noncurrent assets, S3

cash.

7. Record the collection of accounts receivable, $9.

8. Record the purchase of supplies account for future use,

S7.

9. Record the payment of accounts payable, $10.

= journal entry has been entered

3. Prepare an unadjusted tnal balance. (Enter your answers ln thousands of dollars.)

Account TiUes

Cash

Accounts Receivable Supplies

Equipment

Unadjusted Trial Balance

At December 31, 2012

(in thousands)

Debit Credit

NORTHLAND PHYSICAL THERAPY

Accumulated Depreciation (Equipment) Other Noncurre'lt Assets

Accounts Payable

Notes Payable (short-term) Wages Payable

Interest Payable Income Taxes Payable Unearned Revenue Contributed Capital Retained Earnings Dividends Declared Service Revenue Wages Expense Deprec1at1on Expense Income Tax Expense Interest Expense Supplies Expense

Totals

4. Record and post the adjusting journal entries (/)through (p). (If no entry Is required for a transaction/event. select "No Journal Entry Required" in the first account field. Enter your answers In thousands of dollars.)

vi . ·-

Transaction

transaction list x

1. Record the adjusting entry for supplies counted on December 31, 2012 for $3.

2. Record the adjusting entry for depreciation for 2012, $4.

3. Record the adjusting entry for accured interest ror Sl on

notes payable.

4. Record the adjusting entry for wages earned but not paid for $4.

5. Record the adjusting entry for income tax expense ror 2012 for S4 that will be paid in 2013.

= journal entry has been entered

5. Prepare an adjusted tnal balance. (Enter your answers In thousands of dollars.)

Account Titles Debit Credit Cash Accounts Receivable Supplies EquipmentAdjusted Trial Balance At December 31,2012 (In thousands)

Accumulated Depreciation (Equipment) Other Noncurrent Assets

Accounts Payable

Notes Payable (short-term) Wages Payable

Interest Payable

Income Taxes Payable Unearned Revenue Contributed Capital Retained Earnings Dividends Declared Service Revenue Wages Expense Depreciation Expense Income Tax Expense Interest Expense Supplies Expense

Totals

6. Prepare an income statement, statement of retained earnings,and balance sheet. (Enter your answers In thousands of dollars. Amounts to be deducted should be Indicated by a minus sign.)

NORTHLAND PHYSICAL THERAPY

NORTHLAND PHYSICAL THERAPY

Income Statement

For the Year Ended December 31, 2012

(in thousands)

Revenues:

Total Revenues Expenses.

Total Expenses

NORTHLAND PHYSICAL THERAPY

Statement of Retained Earnings

For tho Year Ended December 31, 2012

(in thousands)

Balance,January 1,2012

Balance,December 31, 2012

Current Assets:

Assets

NORTHLAND PHYSICAL THERAPY

Balance Sheet

At December 31, 2012

(in thousands)

Current Liabilities:

LIabilities

Total Current Assets

Total Current Liabilities

Stockholders' Equity

Total Assets

Total Stockholders' Equity

Total liabilities and Stockholders' Equity

7. Prepare and post the closing journal cntnes. (If no entry Is required tor a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers In thousands of dollars.)

view tra. ,

Journal

Reco earni

transaction list x

1. Record entry to close revenue and expense accounts to retained earnings.

2. Record entry to close dividend account to retained earnings.

Transacti•

= Journal entry has been entered

ts

8. Prepare a post losing trial balance (Enter your answers in thousands of dollars.)

Account Titles

Cash

NORTHLAND PHYSICAL THERAPY

Adjusted Trial Balance At December 31, 2012 (In thousands)

Debit Credit

Accounts Receivable

Supplies Equipment

Accumulated Depreciation (Equipment) Other Noncurrent Asset

Accounts Payable

Notes Payable (short-term) Wages Payable

Interest Payable Income Taxes Payable Unearned Revenue Contributed Capital Retained Earnings Dividends Declared Service Revenue Depreciation Expense Income Tax Expense Interest Expense Operating Expenses

Totals

9..a. How much net income did the physical therapy clinic generate during 2012? (Enter your answers In thousands of dollars.)

Net Income

9-b. Is the business financed pnmarily by liabilities or stockholders· equity?

Liabilities Stockholders' Equity

9 . What 1s 11s current ratio? (Enter your answers in thousands of dollars.)

Numerator Denominator

Current Ratio

References eBook & Resources

Comprehensive Problem

C4-3 From Recording Transactions

{Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3,

and 4) [LO 2-3, LO 3-3,

LO 4-1, LO 4-2, LO 4-3,

LO 4-4, LO 4-5,LO 4-

6)

Difficulty: Hard

Leaming Objective: 02-03 Use journal entries and T­ accounts to show how transactions affect the balance sheet.

Ch_,c, riv work

Learning Objective: 03-03 Analyze, record, and summarize the effects or operating transactions using the accounting equation, journal entries, and T­ accounts.

Learning Objective: 04-01 Explain why adjustments are needed.

Learning Objective: 04-02 Prepare adjustments needed at the end of the penod.

Learning Objective: 04-03 Prepare an adjusted trial balance.

Learning Objective . 04-04 Prepare financial statements.

Leaming Objecfr:e·C -05 Explain the closing process.

Learning Objective. 04-06 Explain how adjustments affect

financial results.

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