Jessica Shannon and Kelvin Ali began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2023. The annual reporting period ends December 31. The trial balance on January 1, 2024, was as follows (the amounts are rounded to thousands of dollars to simplify):
Account TitlesDebitCreditCash$ 6 Accounts Receivable2 Supplies2 Equipment9 Accumulated Depreciation $ 3Software8 Accumulated Amortization 3Accounts Payable 5Notes Payable (short-term) 0Salaries and Wages Payable 0Interest Payable 0Income Taxes Payable 0Deferred Revenue 0Common Stock 12Retained Earnings 4Service Revenue 0Depreciation Expense0 Amortization Expense0 Salaries and Wages Expense0 Supplies Expense0 Interest Expense0 Income Tax Expense0 Totals$ 27$ 27
Transactions during 2024 (summarized in thousands of dollars) follow:
Borrowed $19 cash on July 1, signing a six-month note payable.
Purchased equipment for $22 cash on July 2.
Issued additional shares of common stock for $6 on July 3.
Purchased software on July 4, $2 cash.
Received supplies on July 5 on account for future use, $8.
Recorded revenues on December 6 of $53, including $9 on credit and $44 received in cash.
Recognized salaries and wages expense on December 7 of $27; 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, 2025.
Data for adjusting journal entries on December 31:
Amortization for 2024, $3.
Supplies of $2 were counted on December 31, 2024.
Depreciation for 2024, $3.
Interest of $1 on notes payable is yet to be recorded.
Salaries and wages incurred but not yet paid or recorded, $3.
Income tax expense for 2024 was determined to be $3 and will be paid in 2025.
Required:
5. Prepare an adjusted trial balance.