Fred Grimes opened a medical practice specializing in surgery. During the first month of operation (March), the business, titled Dr. Fred Grimes, Professional Corporation (P.C.), experienced the following events:

Mar 6 Grimes invested $40,000 in the business, which in turn issued its common stock to him.

9 The business paid cash for land costing $21,000. Grimes plans to build an office building on the land.

12 The business purchased medical supplies for $3,500 on account.

15 Dr. Fred Grimes, P.C., officially opened for business.

15–31 During the rest of the month, Grimes treated patients and earned service revenue of $20,100, receiving cash for half the revenue earned.

15–31 The business paid cash expenses: employee salaries, $7,500; office rent, $2,400; utilities, $3,600.

31 The business sold supplies to another physician for cost of $920.

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

31 The business paid $500 on account.

Requirements

1. Analyze the effects of these events on the accounting equation of the medical practice of Dr. Fred Grimes, 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 Grimes really own?

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