Gary Smith opened a medical practice specializing in surgery. During the first month of operation (July), the business, titled Gary Smith, Professional Corporation (P.C.), experienced the following events:

Requirements
1. Analyze the effects of these events on the accounting equation of the medical practice of Gary Smith, 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 Smith really own?
e. How much net income or net loss did the business experience during its first month ofoperations?

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Jul Smith invested $41,000 in the business, which in turn issued its common stock to him. 6 9 The business paid cash for land costing $27,000. Smith plans to build an office building on the land. The business purchased medical supplies for $2,100 on account. Gary Smith, P.С., officially opened for business. During the rest of the month, Smith treated patients and earned service revenue of $8,100, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $1,500; office rent, $1,100, utilities, $1,200. The business sold supplies to another physician for cost of $800. The business borrowed $19,000, signing a note payable to the bank. The business paid $1,500 on account. 12 15 15-31 15-31 31 31 31