East HIII Home Healthcare Services was organized flve 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 per value common stock. To date, they are the only stocktiolders. At the end of last. yeat, the accounting records reflected total assets of $729,000 ( $56,000 cash; $514,000 land; $53,000 equipment; and $106,000 bulldings), total liabilities 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 additional paid-In capital; and $405,000 retained eamings). Ouring the current year, the following summarized events occurred: a. Sold 9,700 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). (Hint Flve different accounts are affected) c. Sold one ecre of land ecquired in (b) for $6,000 cash to another company. d. Purchased short-term investments for $15,500 cash. e. One stockholder reported to the company that 350 shares of his East HIII stock had been sold and transferred to another stockholder for $3,300 cash. t. Lent one of the shareholders $5,900 for moving costs and recelved a signed, six-month note from the shareholder. 9. Borrowed $11,000 from a tocat bank; signed a note due in slix months. Requlred: 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. Complete this question by entering your answers in the tabs below. Based only on the completed tabulation, provide the following amounts. East HIII Home Healthcare Services was organized flve 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 per value common stock. To date, they are the only stocktiolders. At the end of last. yeat, the accounting records reflected total assets of $729,000 ( $56,000 cash; $514,000 land; $53,000 equipment; and $106,000 bulldings), total liabilities 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 additional paid-In capital; and $405,000 retained eamings). Ouring the current year, the following summarized events occurred: a. Sold 9,700 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). (Hint Flve different accounts are affected) c. Sold one ecre of land ecquired in (b) for $6,000 cash to another company. d. Purchased short-term investments for $15,500 cash. e. One stockholder reported to the company that 350 shares of his East HIII stock had been sold and transferred to another stockholder for $3,300 cash. t. Lent one of the shareholders $5,900 for moving costs and recelved a signed, six-month note from the shareholder. 9. Borrowed $11,000 from a tocat bank; signed a note due in slix months. Requlred: 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. Complete this question by entering your answers in the tabs below. Based only on the completed tabulation, provide the following amounts
