Reference no: EM132453869

Problem - Dr. Char Morin opened a medical practice specializing in physical therapy. During the first month of operation (January), the business, titled Dr. Char Morin, Professional Corporation (P.C.), experienced the following events:

Jan 6: Morin invested $ 152,000 in the business, which in turn issued its common stock to her.

Jan 9: The business paid cash for land costing $ 61,000. Morin plans to build an office building on the land.

Jan 12: The business purchased medical supplies for $ 1,900 on account.

Jan 15: Dr. Char Morin, P.C., officially opened for business.

Jan 15-31 During the rest of the month, Morin treated patients and earned service revenue of $ 9,600, receiving cash for half the revenue earned.

Jan 15-31: The business paid cash expenses: employee salaries, $ 3,000; office rent, $ 900 ; utilities, $1,100. (Record the cash amount as a total and identify and record any other amounts separately.)

Jan 31: The business sold supplies to another physician for cost of $100 and received cash.

Jan 31: The business borrowed $ 38,000, signing a note payable to the bank.

Jan 31: The business paid $900 on account.

Requirement 1 - Analyze the effects of these events on the accounting equation of the medical practice of Dr. Char Morin, P.C. Begin with the first transaction on January 6.

Which Type of Equity Transaction:

a) Dividends

b) Issued Stock

c) Rent Expense

d) Salary Expense

e) Service Revenue

f) Utilities Expense

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?