E2-27B. (Learning Objective 1, 2: Analyzing transactions; using the accounting equation) Kyle Cohen opened a medical practice specializing in surgery. During the first month of operation (July), the business, titled Kyle Cohen, 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 Kyle Cohen, 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 Cohen really own?

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

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6 Jul 9 12 15 15-31 15-31 31 31 31 Cohen invested 54,000 in the business, which in turn issued its ordinary shares to him. The business paid cash for land costing 21,000. Cohen plans to build an office building on the land. The business purchased medical supplies for 3,200 on account. Kyle Cohen, P.C., officially opened for business. During the rest of the month, Cohen treated patients and earned service revenue of 8,400, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, 700; office rent, 750; utilities, 500. The business sold supplies to another physician for cost of 500. The business borrowed 17,000, signing a note payable to the bank. The business paid 800 on account.