Chapter 2, Problem 2.30BE

(Learning Objective 2: Show the impact of business transactions on the accounting equation) Dr. Char Morin opened a medical practice specializing in surgery. During the first month of operation (July), the business, titled Dr. Char Morin, Professional Corporation (P.C.), experienced the following events:

Jul	6	Morin invested $155,000 in the business, which in turn issued its common stock to her.
	9	The business paid cash for land costing $62,000. Morin plans to build an office building on the land.
	12	The business purchased medical supplies for $1,500 on account.
	15	Dr. Char Morin, P.C., officially opened for business.
	15-31	During the rest of the month, Morin treated patients and earned service revenue of $9,100, receiving cash for half the revenue earned.
	15-31	The business paid cash expenses: employee salaries, $3,300; office rent, $1,400; utilities, $400.
	31	The business sold medical supplies to another physician for cost of $500 and received cash.
	31	The business borrowed $33,000, signing a note payable to the bank.
	31	The business paid $600 on account.

Requirements

1. 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr. Char Morin, P.C.
2. 2. After completing the analysis, answer these questions about the business.
3. a. How much are total assets?
4. b. How much does the business expect to collect from patients?
5. c. How much does the business owe in total?
6. d. How much of the business’s assets does Morin really own?
7. e. How much net income or net loss did the business experience during its first month of operations?