4. Accrued 10. Bank loans (short term) 11. Property, plant and equipment 12. Long term investments 13. Accounts receivable 14. Long term debt Required: For each account , indicate how it normally should be categorized on a classified statement of financial position. Use CA for current asset, NCA for non-current asset, Cl for current liability, NCL for non curent liability, and se for shareholders' equity. Also indicate whether the account normally P2-2 Determining Financial Statement Effects of various Transactions, and Interpreting the Current Ratio (AP2-2) East Hill Home Healthcare Services was organized on January 1, 2019 by four friends. Each organizer invested $2,500 in the company and, in turn, was issued 500 shares. To date, they are the only shareholders. At the end of 2020, the accounting records reflected total assets of $700,000 ($50,000 cash, $500,000 land, $50,000 equipment, and $100,000 buildings), total liabilities of $200,000 (short-term notes payable of $100,000 and long-term notes payable of $100,000), and shareholders' equity of $500,000 ($100,000 contributed capital and $400,000 retained earnings). The following summarized events occurred during January 2021: a. Sold 9,000 additional shares to the original organizers for a total of $90,000 cash. . Purchased a building for $60,000, equipment for $15,000, and four acres of land for $14,000, paid $9,000 in cash and signed a note for the balance (due in 15 years). (Hint: Five different accounts are affected.) c. Sold one acre of land acquired in (b) for $3,500 cash to another company, d. Purchased short-term investments for $18,000 cash. c. One shareholder reported to the company that he sold 300 ili nhares to another shareholder for $3,000 cash. f. Lent $6,000 to one of the shareholders for moving costs, receiving a signed six-month note from the shareholder Required: 1. Was East Hill Home Healthcare Services organized as a sole proprietorship, a partnership, or a corporation? Explain the basis for your answer. 2. During January 2021, the records of the company were inadequate. You were asked to prepare the summary of the preceding transactions. To develop a quick assessment of their economic effects on East Hill Home Healthcare Services, you have decided to complete the tabulation that follows and to use plus (+) for increases and minus (-) for decreases for each account. The first event is used as an example. Assets Shareholders' Equity arm Notes ants receivable Llabilities Short- term Long-term notes notes payable payable 100,000 100,000 Land Building Equipment 500,000 100,000 50,000 Contributed capital 100,000 +90.000 Retained earnings 400,000 3. Did you include the transaction between the two shareholders, event (C), in the tabulation? Whor why not? 4. Based only on the completed o paid 10.000 are affected way mga Bandar from the town warm that he Le har god receiving a Isto Healthcare Services and as a sole proprietorship, aporte 2. During January, the records of the company were inadequate hou were asked to prepan way of the program. To develop a quick ass of their economic elect and to use plus (+) for increand mins(-) for decreases for each account. The first event on Fast Home Healthcare Services, you have decided to complete the tabulation that follows Pesandaler for de in 15 years) Sadar Bandar Med den for 18.00 for a the shareholder Required corpion Explain the basis for your is used as an example Shareholders' Equity LO Lates Short term Long term notes payable payable - 100,000 100.000 Cash Beg 50,000 al 90,000 Contributed capital 100,000 +40,000 Assets Retained earnings Short-term Notes notes investments receivable Land Building Equipment 400,000 500,000 100.000 50,000 3. Did you include the transaction between the two shareholders, event (), in the tabulation? Why or why not? Bused only on the completed tabulation, provide the following amounts at January 31, 2021 (show computations): a. Total assets 6. Total liabilities 99 CHAPTER 2 Investing and Financing Decisions and the Accounting System "It Balance Total shareholders' equity d. Cash balance c. Total current assets 5. Compute the current ratio at January 31, 2021. What does this suggest about the company? P2-3 L02-4,2-6 excel Recording Transactions in T-Accounts, Preparing a statement of Financial Position from a Trial Balance, and Evaluating the Current Ratio (AP2-3) Injection Plastics Company has been operating for three years. At December 31, 2020, the accounting records reflected the following: Cash Investments (short term) counts receivable Inventories Notes receivable long term) Equipment Farton building or $21,000 2.000 3,000 24,000 1.000 48,000 40.000 $ 3.000 15.000 2.000 7.000 48,000 90,000 30.000 Intangibles Accounts payable Accrued liabilities Short-term borrowings Notes payable (long-term) Contributed capital Retained earnings NCZ normally