Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based only on the completed tabulation, provide the following amounts. urrent year, the records of the company were inadequate. You were asked to prepare the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Based only on the completed tabulation, provide the following amounts. urrent year, the records of the company were inadequate. You were asked to prepare the summary of transactions shown above. To develop a quick assessment: ervices, complete the tabulation that follows. The first event is used as an example. decreases to accounts with a minus sign. Compute the current ratio for the current year. Note: Round your answer to 2 decimal places. East Hill Home Healthcare Services was organized five years ago by four friends who each invested $11,000 in the company and, in turn, were issued in total 8,000 shares of $1,00 par value common stock. To date, they are the only stockholders, At the end of last. year, the accounting records reflected total assets of $736,000 ( $56,000 cash; $518,000 land; $59,000 equipment, and $103,000 building 5 ), total liabilities of $206,000 (short-term notes payable $100,000 and long-term notes payable $106,000 ), and stockholders equity of $530,000 ( $23,000 common stock; $94,000 additional paid-in capital; and $413,000 retained earnings). During the currentyear, the following summarized events occurred: a. Sold 9,500 additional shares of stock to the original organizers for a total of $96,000 cash. b. Purchased a bullding for $64,000, equipment for $15,000, and four acres of land for $15,000; paid $19,000 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 $3,750 cash to another company. d. Purchased short-term investments for $20,000 cash. e. One stockholder reported to the company that 380 shares of his East Hill stock had been sold and transferred to another stockholder for $3,700 cash. f. Lent one of the shareholders $5,700 for moving costs and recelved a signed, six-month note from the shareholder. 9. Borrowed $11,000 from a local bank; signed a note due in six months. Required: 1. Was East Hill Home Healthcare Services organized as a sole proprietorship, a partnership, or a corporation? 2. During the current year, the records of the company were inadequate. You were asked to prepare the summary of transactions shown above. To develop a quick assessment of their economic effects on East Hill Home Healthcare Services, complete the tabulation that follows. The first event is used as an example. 4. Based only on the completed tabulation, provide the following amounts. 5. Compute the current ratio for the current year. Based only on the completed tabulation, provide the following amounts. urrent year, the records of the company were inadequate. You were asked to prepare the summary of transactions shown above. To develop a quick assessment: ervices, complete the tabulation that follows. The first event is used as an example. decreases to accounts with a minus sign. Compute the current ratio for the current year. Note: Round your answer to 2 decimal places. East Hill Home Healthcare Services was organized five years ago by four friends who each invested $11,000 in the company and, in turn, were issued in total 8,000 shares of $1,00 par value common stock. To date, they are the only stockholders, At the end of last. year, the accounting records reflected total assets of $736,000 ( $56,000 cash; $518,000 land; $59,000 equipment, and $103,000 building 5 ), total liabilities of $206,000 (short-term notes payable $100,000 and long-term notes payable $106,000 ), and stockholders equity of $530,000 ( $23,000 common stock; $94,000 additional paid-in capital; and $413,000 retained earnings). During the currentyear, the following summarized events occurred: a. Sold 9,500 additional shares of stock to the original organizers for a total of $96,000 cash. b. Purchased a bullding for $64,000, equipment for $15,000, and four acres of land for $15,000; paid $19,000 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 $3,750 cash to another company. d. Purchased short-term investments for $20,000 cash. e. One stockholder reported to the company that 380 shares of his East Hill stock had been sold and transferred to another stockholder for $3,700 cash. f. Lent one of the shareholders $5,700 for moving costs and recelved a signed, six-month note from the shareholder. 9. Borrowed $11,000 from a local bank; signed a note due in six months. Required: 1. Was East Hill Home Healthcare Services organized as a sole proprietorship, a partnership, or a corporation? 2. During the current year, the records of the company were inadequate. You were asked to prepare the summary of transactions shown above. To develop a quick assessment of their economic effects on East Hill Home Healthcare Services, complete the tabulation that follows. The first event is used as an example. 4. Based only on the completed tabulation, provide the following amounts. 5. Compute the current ratio for the current year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen

6th Edition

0324302959, 9780324302950

More Books

Students also viewed these Accounting questions

Question

Discuss environmentally friendly products and product development.

Answered: 1 week ago

Question

Appreciate important legal implications of performance appraisals

Answered: 1 week ago