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Chapter 2 ( 2 1 0 points eBook Print Reference East HIII Home Healthcare Services was organized five years ago by four friends who each

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East HIII Home Healthcare Services was organized five years ago by four friends who each Invested $12,000 in the company and, In turn, were issued In total 8,800 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 $729,000[ $56,000 cash; $514,000 land; $53,000 equipment; and $106,000 bullidngs), total llabilitles of $212,000(short-term notes payable $106,000 and long-term notes payable $106,000), and stockholders' equity of $517,000($22,000 common stock; $90,000 additlonal pald-In capital; and $405,000 retained earnings). During the current year, the following summarized events occurred:
a. Sold 9700 additional shares of stock to the original organizers for a total of $97,000 cash.
b. Purchased a bullding for $59,000, equipment for $19,000, and four acres of land for $24,000; pald $15,000 in cash and signed a note for the balance (due in 15 years).(Whi: Flve different accounts are affected.)
c. Sold one acre of land acquired in (b) for $6,000 cash to another company.
d. Purchased short-term inwestments for $15,500 cash.
e. One stockholder reported to the compary that 350 shares of his East HIII stock had been sold and transferred to another stocknoider for $3,300 cash.
t. Lent one of the shareholders $$500,30 for moving costs and recelved a signed, six-month note from the shareholder.
9. Borrowed $11,000 trom a local bank, signed a note due in stx months.
Required:
Was East Hill Home Heathcare Servces organized as a sole proprietorship, a partnership, or a corporatlon?
During the current year, the records of the company were inadequate vou were asked to prepare the summary of transactions shown above. To develop a q isk asssisment of thelr economic effects on East. Hill Home Healthcare Services, complete the tabulavion that follows. The tist event is used as an example.
Based only on the completed tabueilon, orovide the to owing amounts.
Compute the current ratio for the currenc year:
Complete this question by entering your answers in the tabs below.
\table[[\table[[Required],[1]],Required,Required,Required]]
Based only on the completed tabulation, provide the following amounts.
\table[[a. Total assets at the end of the year.],[b. Total liabilites at the end of the year.],[c. Total stockholders equity at the end of],[the year.],[d. Cash balance at the end of the year.],[e. Total current assets at the end of the],[year.]]
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