East Hill Home Healthcare Services was organized by four friends who each invested $10,000 in the company and, in turn, was issued 8,000 shares of $1 00 par value stock To date, they are the only stockholders At the end of the last year, 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 stockholders equity of $500,000 ($20,000 of common stock, $80,000 of additional paid in capital, and $400,000 retained earnings) During the current year, the following summarized events occurred Sold 9,000 additional shares of stock 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 ) Sold one acre of land acquired in ( b ) for $3,500 cash to another company Purchased short term investments for $18,000 cash One stockholder reported to the company that 300 shares of his East Hill stock had been sold and transferred to another stockholder for $3,000 cash Lent one of the shareholders $5,000 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 Sole proprietorship Partnership Corporation 2 During the current year, 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 4 Based only on the completed tabulation, provide the following amounts 5 Compute the current ratio for the current year (Round your answer to 2 decimal places )

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East Hill Home Healthcare Services was organized by four friends who each invested $10,000 in the company and, in turn, was issued 8,000 shares of

East Hill Home Healthcare Services was organized by four friends who each invested $10,000 in the company and, in turn, was issued 8,000 shares of $1.00 par value stock. To date, they are the only stockholders. At the end of the last year, 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 stockholders equity of $500,000 ($20,000 of common stock, $80,000 of additional paid-in capital, and $400,000 retained earnings). During the current year, the following summarized events occurred:

Sold 9,000 additional shares of stock 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.)
Sold one acre of land acquired in (b) for $3,500 cash to another company.
Purchased short-term investments for $18,000 cash.
One stockholder reported to the company that 300 shares of his East Hill stock had been sold and transferred to another stockholder for $3,000 cash.
Lent one of the shareholders $5,000 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?

	Sole proprietorship
	Partnership
	Corporation

2. During the current year, 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.

4. Based only on the completed tabulation, provide the following amounts:

5. Compute the current ratio for the current year. (Round your answer to 2 decimal places.)