Dr. Char Morin opened a medical practice specializing in surgery. During the first month of operation (July),

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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. The business paid cash for land costing $62,000. Morin plans to build an office building on the land. The business purchased medical supplies for $1,500 on account. Dr. Char Morin, P.C., officially opened


Requirements

1. Analyze the effects of these events on the accounting equation of the medical practice of Dr. Char Morin, P.C.

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 Morin really own?

e. How much net income or net loss did the business experience during its first month of operations?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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