Question

In: Accounting

Dr. Chris EvensenChris Evensen opened a medical practice specializing in physical therapy. During the first month...

Dr.

Chris EvensenChris Evensen

opened a medical practice specializing in physical therapy. During the first month of operation

(DecemberDecember),

the business, titled Dr.

Chris EvensenChris Evensen,

Professional Corporation(P.C.), experienced the following events:

LOADING...

(Click the icon to view the events.) Read the requirements

LOADING...

.

Requirement 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr.

Chris EvensenChris Evensen,

P.C.Begin with the first transaction on

DecemberDecember

6. (Use parentheses or a minus sign when decreasing accounts. If a box is not used in the table leave the box empty; do not enter a zero. Enter the transactions in the same order as they appear in the original list.)

Assets

=

Liabilities

+

Stockholders' Equity

Accts

Medical

Accts

Note

Common

Retained

Type of Equity

Cash

+

Rec.

+

Supplies

+

Land

=

Pay.

+

Payable

+

Stock

+

Earnings

Transaction

Dec 6

9

12

15

15-31

31

Bal.

Total

=

Requirement 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 Evensen really own?

$

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

of $

during its first month of operations.

DecDec	6	EvensenEvensen invested $ 155 comma 000$155,000 in the business, which in turn issued its common stock to her.
	9	The business paid cash for land costing $ 59 comma 000$59,000. EvensenEvensen plans to build an office building on the land.
	12	The business purchased medical supplies for $ 1 comma 800$1,800 on account.
	15	Dr. Chris EvensenChris Evensen, P.C., officially opened for business.
	15-31	During the rest of the month, EvensenEvensen treated patients and earned service revenue of $ 9 comma 500$9,500, receiving cash for half the revenue earned.
	15-31	The business paid cash expenses: employee salaries, $ 2 comma 700$2,700; office rent, $ 1 comma 300 ;$1,300; utilities, $ 800$800. (Record the cash amount as a total and identify and record any other amountsseparately.)
	31	The business sold supplies to another physician for cost of $ 700$700 and received cash.
	31	The business borrowed $ 30 comma 000$30,000, signing a note payable to the bank.
	31	The business paid $ 700$700 on account.

Expert Solution

	Assets				=	Liabilities		+	Stockholders' Equity		Type of Equity Transaction
	Cash	Accts Rec.	Medical Supplies	Land	=	Accts. Payable	Note Payable	+	Common Stock	Retained Earnings	Type of Equity Transaction
Dec. 6	155000								155000
9	-59000			59000
12			1800			1800
15
15-31	4750	4750								9500	Service revenue
15-31	-4800									-2700	Salaries expense
										-1300	Rent expense
										-800	Utilities expense
31	700		-700
31	30000						30000
31	-700					-700
Bal.	125950	4750	1100	59000		1100	30000		155000	4700
Total	190800				=	190800

a.	$ 190,800
b.	$ 4,750
c.	$ 31,100
d.	$ 159,700
e.	Net income $ 4,700

ekkarill92 answered 1 year ago

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