E2-16A. (Learning Objective 1, 2: Analyzing transactions; using the accounting equation)

Harry Samson opened a medical practice specializing in surgery. During the first month of operation (March), the business, titled Harry Samson, 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 Harry Samson, 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 Samson really own?

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

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Mar 6 Samson invested $40,000 in the business, which in turn issued its ordinary shares to him. 9 The business paid cash for land costing $22,000. Samson plans to build an office building on the land. 12 15 The business purchased medical supplies for $15,000 on account. Harry Samson, P.C., officially opened for business. 15-31 During the rest of the month, Samson treated patients and earned service revenue of $8,500, receiving cash for half the revenue carned. 15-31 The business paid cash expenses: employee salaries, $750; office rent, $700; utilities, $300. 31 31 The business sold supplies to another physician for cost of $300. The business borrowed $17,000, signing a note payable to the bank. 31 The business paid $1,200 on account.