Question

Answer both E2-30b and E2-31b please. Thank you so much for your help

E2-30B. (Learning Objective 2: Show the impact of business transactions on the account. ing equation) Dr. Char Morin opened a medical practice specializing in surgery. During the first month of operation (July), the business, titled Dr. Char Morin, Professional Corporation (P.C.), experienced the following events: Jul 6 9 12 15 15-31 Morin invested $155,000 in the business, which in turn issued its common stock to her. The business paid cash for land costing $62,000. Morin plans to build an office building on the land. The business purchased medical supplies for $1,500 on account. Dr. Char Morin, P.C., officially opened for business. During the rest of the month, Morin treated patients and earned service revenue of $9,100, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $3,300; office rent, $1,400; utilities, $400. The business sold medical supplies to another physician for cost of $500 and received cash. The business borrowed $33,000, signing a note payable to the bank. The business paid $600 on account. 15-31 31 31 31 Requirements 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr. Char Morin, 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 Morin really own? e. How much net income or net loss did the business experience during its first month of operations? E2-31B. (Learning Objective 4: Journalize transactions in the books) Refer to Exercise 2-30B. Requirement 1. Record the transactions in the journal of Dr. Char Morin. P.C. List the transactions by dat and give an explanation for each transaction

Answer 1

E2-30B

			Assets					Owner's Equity + Liabilities
			Cash	Land	Supplies	Accounts Receivable	=	Capital	Accounts Payable	Notes Payable
Jul,6			155000					155000
Jul,9			-62000	62000
	Bal.		93000	62000			=	155000
Jul,12					1500				1500
	Bal.		93000	62000	1500		=	155000
Jul,15-31			4550			4550		9100
	Bal.		97550	62000	1500	4550	=	164100
Jul,15-31			-5100					-5100
	Bal.		92450	62000	1500	4550	=	159000
Jul,31			500		-500
	Bal.		92950	62000	1000	4550	=	159000	1500
Jul,31			33000							33000
	Bal.		125950	62000	1000	4550	=	159000	1500	33000
			-600						-600
			125350	62000	1000	4550	=	159000	900	33000

E2-30B

2a Total assets = 125350 + 62000 + 1000 + 4550 = $192900

2b Accounts Receivable = $4550 Expect to collect from Patients

2c Total Owe = 900 + 33000 = $33900

2d Really owned Assets = Total Assets - Amount borrowed from Bank = 192900 - 33000 = $159900

2e Net Income = Service Revenue - Expenses = 9100 - 5100 = $4000

E2-31B

Journal Entry
Date	Accounts & Explanations	Debit	Credit
2012	Cash	155000
Jul,6	Common Stock		155000
	(To invest cash in Business and turn into common stock)
Jul,9	Land	62000
	Cash		62000
	(To purchase land on cash)
Jul,12	Medical Supplies	1500
	Accounts Payable		1500
	(To medical supplies on account)
Jul,15-31	Accounts Receivable	4550
	Cash	4550
	Service Revenue		9100
	(To render service on account and cash)
Jul,15-31	Salaries	3300
	Office Rent	1400
	Utilities Exp.	400
	Cash		5100
	(To pay expenses on cash)
Jul,31	Cash	500
	Medical Supplies		500
	(To sale medical supplies on cash)
Jul,31	Cash	33000
	Accounts Payable(Bank Loan)		33000
	(To Sign notes Payable for Bank Loan)
Jul,31	Accounts Payable	1800
	Cash		1800
	(To pay on account)