Dr. James has worked with animals for more than 25 years. He has been a racehorse groom, a boarding kennel manager, a veterinary technician, and a veterinarian. Dr. James started a sole proprietorship called Vet-to-Pet, a house call practice for dogs and cats. Dr. James visits pets in homes to provide basic veterinary services. He treats illnesses such as skin problems, allergies, ear and eye irritations, minor wounds, and abscesses. Vaccinations and lab screening tests are also administered. Dr. James considers his services to be a supplement to the care given by other veterinarians, and is intended for those who have a hard time getting their pets to a clinic. Dr. James works independently and uses a van to make her house calls. He charges an initial fee, which covers her expenses traveling to the patient's home. This fee varies depending on the distance Dr. James must travel. He also charges for the exam and any treatment, lab work, or medication required. He offers a sliding scale (lower, variable fees) for senior citizens on fixed incomes. He serves individuals with mobility limitations and works with seeing-eye and assistant/working dogs.

a) Discuss in details showing all working What are the investments Dr. James has probably made in his business and how would each affect the basic accounting equation?

b) discuss in details and showing all working What assets might this business have? Liabilities?

c) discuss in details and showing all working Identify and classify the accounts affected if Dr. James receives a cash payment for a visit.

d) discuss in details and showing all working Identify and classify the accounts affected if Dr. James wrote a checque to pay for new veterinary equipment to be used on the van.