(Learning Objective 2: Show the impact of business transactions on the accounting equation) Dr. Helen Samoa opened a medical practice specializing in physical therapy.During the first month of operation (December), the business, titled Dr. Helen Samoa, Professional Corporation (P.C.), experienced the following events:Samoa invested $150,000 in the business, which in turn issued its commonstock to her.The business paid cash for land costing $64,000. Samoa plans to buildan oce building on the land.The business purchased medical supplies for $2,400 on account.Dr. Helen Samoa, P.C., ocially opened for business.During the rest of the month, Samoa treated patients and earned servicerevenue of $9,800, receiving cash for half the revenue earned.The business paid cash expenses: employee salaries, $3,600; ocerent, $900; utilities, $400.The business sold medical supplies to another physician for cost of $1,000 andreceived cash.The business borrowed $34,000, signing a note payable to the bank.The business paid $1,300 on account.69121515–3115–31313131DecRequirements1. Analyze the effects of these events on the accounting equation of the medical practice ofDr. Helen Samoa, P.C.
(Learning Objective 2: Show the impact of business transactions on the
During the first month of operation (December), the business, titled Dr. Helen Samoa, Professional Corporation (P.C.), experienced the following events:
Samoa invested $150,000 in the business, which in turn issued its common
stock to her.
The business paid cash for land costing $64,000. Samoa plans to build
an oce building on the land.
The business purchased medical supplies for $2,400 on account.
Dr. Helen Samoa, P.C., ocially opened for business.
During the rest of the month, Samoa treated patients and earned service
revenue of $9,800, receiving cash for half the revenue earned.
The business paid cash expenses: employee salaries, $3,600; oce
rent, $900; utilities, $400.
The business sold medical supplies to another physician for cost of $1,000 and
received cash.
The business borrowed $34,000, signing a note payable to the bank.
The business paid $1,300 on account.
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Requirements
1. Analyze the effects of these events on the accounting equation of the medical practice of
Dr. Helen Samoa, P.C.
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