Learning Objective 2: Show the impact of business transactions on the accounting equation) Dr. Char Morin opened a medical practice specializing in surgery. During thefirst month of operation (July), the business, titled Dr. Char Morin, Professional Corporation(P.C.), experienced the following events:Morin invested $155,000 in the business, which in turn issued its commonstock to her.The business paid cash for land costing $62,000. Morin plans to buildan oce building on the land.The business purchased medical supplies for $1,500 on account.Dr. Char Morin, P.C., ocially opened for business.During the rest of the month, Morin treated patients and earned servicerevenue of $9,100, receiving cash for half the revenue earned.The business paid cash expenses: employee salaries, $3,300; ocerent, $1,400; utilities, $400.The business sold medical supplies to another physician for cost of $500 andreceived cash.The business borrowed $33,000, signing a note payable to the bank.The business paid $600 on account.69121515–3115–31313131JulRequirements1. Analyze the effects of these events on the accounting equation of the medical practice ofDr. Char Morin, P.C.2. After completing the analysis, answer these questions about the business.a. How much are total assets?b. How much does the business expect to collect from patients?c. How much does the business owe in total?d. How much of the business’s assets does Morin really own?e. How much net income or net loss did the business experience during its first month ofoperations?
Learning Objective 2: Show the impact of business transactions on the
first month of operation (July), the business, titled Dr. Char Morin, Professional Corporation
(P.C.), experienced the following events:
Morin invested $155,000 in the business, which in turn issued its common
stock to her.
The business paid cash for land costing $62,000. Morin plans to build
an oce building on the land.
The business purchased medical supplies for $1,500 on account.
Dr. Char Morin, P.C., ocially opened for business.
During the rest of the month, Morin treated patients and earned service
revenue of $9,100, receiving cash for half the revenue earned.
The business paid cash expenses: employee salaries, $3,300; oce
rent, $1,400; utilities, $400.
The business sold medical supplies to another physician for cost of $500 and
received cash.
The business borrowed $33,000, signing a note payable to the bank.
The business paid $600 on account.
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Requirements
1. Analyze the effects of these events on the accounting equation of the medical practice of
Dr. Char Morin, P.C.
2. After completing the analysis, answer these questions about the business.
a. How much are total assets?
b. How much does the business expect to collect from patients?
c. How much does the business owe in total?
d. How much of the business’s assets does Morin really own?
e. How much net income or net loss did the business experience during its first month of
operations?
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