Sue Smith opened a medical practice specializing in surgery. During the first month of operation (May), the business, titled Dr. Sue Smith, Professional Corporation (PC), experienced the following events:

May 6 Smith invested $148,000 in the business, which in turn issued its common stock to her.

9 The business paid cash for land costing $59,000. Smith plans to build an office building on the land.

12 The business purchased medical supplies for $1,700 on account.

15 Sue Smith, P.C., officially opened for business.

15-31 During the rest of the month, Smith treated patients and earned service revenue of $9,000, receiving cash for half the revenue earned.

15-31 The business paid cash expenses: employee salaries, $3,200; office rent, $1,100; utilities, $1,200. 31 The business sold supplies to another physician for cost of $300 and received cash.

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

31 The business paid $1,300 on account.

Requirements

1. Analyze the effects of these events on the accounting equation of the medical practice of Dr. Sue 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 of operations?