Reference no: EM132470777

Dr. Willow Beard

Willow Beard opened a medical practice specializing in physical therapy. During the first month of operation ?(October October?), the? business, titled Dr. Willow Beard

Willow Beard?, Professional Corporation? (P.C.), experienced the following? events:

Oct Oct                 6 Beard

• Beard invested $ 149 comma 000

$149,000 in the? business, which in turn issued its common stock to her.

• The business paid cash for land costing $ 65 comma 000

$65,000. Beard

Beard plans to build an office building on the land.

• The business purchased medical supplies for $ 2 comma 400 $2,400 on account.

• Dr. Willow Beard
• Willow Beard?, ?P.C., officially opened for business.?15-31
• During the rest of the? month, Beard
• Beard treated patients and earned service revenue of $ 9 comma 10 
• $9,100?, receiving cash for half the revenue earned. ?15-31
• The business paid cash? expenses: employee? salaries, $ 3 comma 300
• $3,300?; office? rent, $ 1 comma 200 ;
• $1,200; ?utilities, $ 600
• $600. ?(Record the cash amount as a total and identify and record any other amounts? separately.)
• The business sold supplies to another physician for cost of $ 300
• $300 and received cash.
• 31
• The business borrowed $ 38 comma 000
• $38,000?, signing a note payable to the bank
• 31
• The business paid $ 1 comma 000
• $1,000 on account.

Question 1: Analyze the effects of these events on the accounting equation of the medical practice of Dr. Willow Beard