Refer to exercise E2-17. Record the transactions in the journal of Joseph Ohara Dental Clinic Ltd. List the transactions by date, and give an explanation for each transaction.

Exercise 2-17

Joseph Ohara opens a dental practice. During the first month of operation (March), the practice, titled Joseph Ohara Dental Clinic Ltd., experienced the following events:

{Requirement}
Dr. Ohara has the following questions about his practice after the first month of operations Provide him with the answers

a. What are the total assets of the practice?

b. How much is owing to the practice from patients?

c. How much does the practice owe in total?

d. How much of the practice's assets does Dr. Ohara have a claim to?

e. How much net income did the practice earn?

Transcribed Image Text:

March 6 9 12 15 15-31 15-31 Ohara invested $50,000 in the business, which in turn issued its common shares to him. The business paid cash for land costing $30,000. Ohara plans to build a profes- sional services building on the land. The business purchased dental supplies for $3,000 on account. Joseph Ohara Dental Clinic Ltd. officially opened for business. During the rest of the month, Ohara treated patients and earned service revenue of $10,000, receiving cash for half the revenue earned. The practice paid cash expenses: employee salaries, $1,400; office rent, $1,000; utilities, $300. The practice used dental supplies with a cost of $250. The practice borrowed $10,000, signing a note payable to the bank. 31 31 31 The practice paid $2,000 on account to a suppiler.