Drs. Glenn Feltham and Gary Entwistle began operations of their physical therapy

Drs. Glenn Feltham and Gary Entwistle began operations of their physical therapy clinic called Northland Physical Therapy on Jan 1 2005. THe annual reporting period ends December 31. The trial balance on January 1 2006 was as follows(the amounts are rounded to thousands of dollars to simplify) Transactions during 2006 (summarized in thousands of dollars) follow: a. Borrowed $22 cash on July 1 2006 signing a short-term note payable. b. Purchased equipment for $20 cash on July 1 2006. c. Issued additional shares of stock for $5. d. Earned revenues for 2006 $55 including $8 on credit and $47 received in cash. e. Recognized operating expenses for 2006 $30 including $5 on credit and $25 in cash. f. Purchased other assets $3 cash. g. Collected accounts receivable $9. h. Paid accounts payable $7. i. Purchased on account supplies for future use $8. j. Received a $3 deposit from a hospital for a contract to start January 5 2007. k. Declared a dividend $4. l. Paid the $4 dividend in cash. Data for adjusting journal entries: m. Supplies of $4 were counted on December 31 2006. n. Depreciation for 2006 $5. o. Accrued interest on notes payable of $1. p. Wages earned since the December 27 payroll not yet paid $2. q. Income tax for 2006 was $4 and will be paid in 2007. Required: 1. Set up T-accounts for the accounts on the trial balance and enter beginning balances. 2. Record journal entries for transactions a through l and post them to the T-accounts. 3. Prepare an unadjusted trial balance. 4. Record and post the adjusting journal entries m through q. 5. Prepare an adjusted trial balance. 6. Prepare an income statement statement of retained earnings and balance sheet. 7. Prepare and post the closing journal entries. 8. Prepare a post-closing trial balance. 9. How much net income did the physical therapy clinic generate during 2006? Is the business financed primarily by debt or equity?