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Drs$.$ Elaine Newton and Alicia Donland began operation of their physical therapy clinic called Northward Physical Therapy, on January $1,2019.$ The annual reporting period ends December $31.$ A trial balance was created with amounts rounded to the nearest thousand dollars.

The trial balance on January $1,2020$ was as follows:

$$

Account titles

Debit

credit

Cash

$$7000$

Account Receivable

$3000$

supplies

$3000$

equipment

$6000$

$$1000$

accumulated depreciation$($equipment$)$

$6000$

other assets

$5000$

acounts payable

$0$

notes payable

$0$

wages payable

$0$

income tax payable

$0$

deffered revenue

$0$

contributed capital

$15000$

retained earnings

$4000$

dividends declared

$0$

service revenue

$0$

depreciation expense

$0$

income tax expense

$0$

interest expense

$0$

operating expenses

$0$

totals

$$25000$

$$25000$

$$

$$

$$

a$.$

Borrowed $$22,000$ cash only july $1,2020,$ signing a six$-$month note payable

b$.$

purchased equipment for$$ $$25,000$ cash on july $1,2020$

c$.$

Issued additional shares for $$5,000$

d$.$

earned revenues for $2020$ of $$55,000,$ including $$8,000$ on credit and $$47,000$ received in cash

e$.$

recognized operating expenses for$$ $$2,000$ of $$30,000,$ including$$ $$5,000$ on credit and $$25,000$ in cash

f$.$

purchased other assets $$3,000$ cash

g$.$

collected accounts receivable, $$9,000$

h$.$

paid accounts payable, $$10,000$

i$.$

purchased supplies on account for future use, $$7,000$

j$.$

purchased a $$3,000$ deposit from a hospital for a contract to start January $5,2021$

k$.$

declared and paid a cash dividend, $$4,000$

l$.$

supplies of $$3,000$ were counted on Decemeber $31,2020$

m$.$

depreciation for $2020,$ $$4,000$

n$.$

accrued interest on notes payable of $$1,000$

o$.$

wages incurred since the december $27$ payroll not yet paid,$$3,000$

p$.$

income tax expense for $2020$ was $$4,000,$ and will be paid in $2021$

$1.$ Record journal entries for transactions $($a$)$ through $($k$)$

$2.$ Prepare T$-$accounts that show opening balances and post transactions $($a$)$ through $($k$)$ to the T$-$accounts

$3.$ Prepare an unadjusted trial balance

$4.$ Record adjusting journal entries $($l$)$ through $($p$)$

$5.$ Prepare an adjusted trial balance

$6.$ Prepare an income statement

$7.$ Prepare a statement of retained earnings and a balance sheet

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