Refer to Exercises 2-26B and 2-27B.

In Exercises 2-26B, Fred Grimes opened a medical practice specializing in surgery. During the first month of operation (March), the business, titled Dr. Fred Grimes, Professional Corporation (P.C.), experienced the following events:

Mar 6 Grimes invested $40,000 in the business, which in turn issued its common stock to him.

9 The business paid cash for land costing $21,000. Grimes plans to build an office building on the land.

12 The business purchased medical supplies for $3,500 on account.

15 Dr. Fred Grimes, P.C., officially opened for business.

15–31 During the rest of the month, Grimes treated patients and earned service revenue of $20,100, receiving cash for half the revenue earned.

15–31 The business paid cash expenses: employee salaries, $7,500; office rent, $2,400; utilities, $3,600.

31 The business sold supplies to another physician for cost of $920.

31 The business borrowed $32,000, signing a note payable to the bank.

31 The business paid $500 on account.

Requirements

1. Post the entries to the ledger, using T-accounts. Key transactions by date.

2. Prepare the trial balance of Dr. Fred Grimes, P.C., at March 31, 2014.

3. From the trial balance, determine total assets, total liabilities, and total shareholders’ equity on March 31.