Dr. opened a medical practice specializing in physical therapy. During the first month of operation
( ), the business, titled Dr. , Professional Corporation (P.C.), experienced the following events:
Willow Beard
May W
...
Dr. opened a medical practice specializing in physical therapy. During the first month of operation
( ), the business, titled Dr. , Professional Corporation (P.C.), experienced the following events:
Willow Beard
May Willow Beard
(Click the icon 1 to view the events.)
Read the requirements2.
Requirement 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr.
Willow Beard , P.C.
Begin with the first transaction on 6. (Use parentheses or a minus sign for numbers to be subtracted. Only
complete the necessary answer boxes. Enter the transactions in the same order as they appear in the original list.)
May
Assets = Liabilities + Stockholders' Equity
Accts Medical Accts Note Common Retained Type of Equity
Cash + Rec. + Supplies + Land = Pay. + Payable + Stock + Earnings Transaction
May 6 149,000 149,000 Issued stock
9 (63,000) 63,000
12 2,100 2,100
15
15-31 4,600 4,600 9,200 Service revenue
15-31 (5,700) (5,700) Expenses
31 200 (200)
31 36,000 36,000
31 (1,200) (1,200)
Bal. 119,900 4,600 1,900 63,000 900 36,000 149,000 3,500
Total 189,400 = 189,400
Requirement 2. After completing the analysis, answer these questions about the business.
a. How much are total assets? $ 189400
b. How much does the business expect to collect from patients? $ 4600
c. How much does the business owe in total? $ 36900
d. How much of the business's assets does Beard really own? $ 152500
e. How much net income or net loss did the business experience during its first month of operations? (Enter the
amount as a positive value).
The business experienced net income of $ 3500 during its first month of operations.
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