Building upon the results of Exercise 2-16A, Show the impact of business transactions on the accounting equation.

. Effects of above events on the accounting equation of the medical practice of Bob Morin are as follows:

Bob Morin, P.C.

Journal Entries

Date Particulars Dr. (in $) Cr. (in $)

Aug 9 Cash Account Dr. 39000

To Capital Account 39000

(Being capital introduced to business)

Aug 9 Land Account Dr. 29000

To Cash Account 29000

(Being land purchased for cash)

Aug 12 Medical Supplies Account Dr. 1700

To Creditor 1700

(Being Medical Supplies purchased on credit)

Aug 15-31 Cash Account Dr. 3800

Debtors Account Dr. 3800

To Revenue from Services 7600

Aug 31 Salary Expenses Dr. 1300

Rent Expenses Dr. 700

Utilities Expenses Dr. 500

To Cash Account 2500

(Being Expenses paid in cash)

Aug 31 Cash Account Dr. 700

To Medical Supplies Account 700

(Being Medical Supplies sold another surgeon)

Aug 31 Cash Account Dr. 12000

To Bank Loan Account 12000

(Being money Borrowed from Bank)

Aug 31 Creditor Account Dr. 800

To Cash Account 800

(Being cash paid to creditors)

2. a. Total Asset of Business are:

Land 29000

Medical Supplies 1000

Debtors 3800

Cash 23200

Total Assets $57000

b. Business expect to collect from patients : $3800

c. Business Owings : $12000

d. Business Asset that really Morin Own : $ 45000

e. Net Income of business during its first month of operations :

Revenue from Service Rendered 7600

Less: Expenses 2500

Net Income $5100