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:

March 6 Ohara invested $50,000 in the business, which in turn issued its common shares to him.

9 The business paid cash for land costing $30,000. Ohara plans to build a professional services building on the land.

12 The business purchased dental supplies for $3,000 on account.

15 Joseph Ohara Dental Clinic Ltd. officially opened for business.

15-31 During the rest of the month, Ohara treated patients and earned service revenue of $10,000, receiving cash for half the revenue earned.

15-31 The practice paid cash expenses: employee salaries, $1,400; office rent, $1,000; utilities, $300.

31 The practice used dental supplies with a cost of $250.

31 The practice borrowed $10,000, signing a note payable to the bank.

31 The practice paid $2,000 on account.

Requirements

1. Analyze the effects of these events on the accounting equation of the practice of Joseph Ohara Dental Clinic Ltd. Use a format similar to that of Exhibit 2-1 , Panel B, with headings for Cash, Accounts Receivable, Dental Supplies, Land, Accounts Payable, Note Payable, Share Capital, and Retained Earnings.

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 Ohara really own?

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