Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

East Hill Home Healthcare Services was organized on January 1, 2019 by four friends. Each organizer invested $10,000 in the company and. in turn, was

image text in transcribed
image text in transcribed
image text in transcribed
East Hill Home Healthcare Services was organized on January 1, 2019 by four friends. Each organizer invested $10,000 in the company and. in turn, was issued 9,000 shares. To date, they are the only shareholders. At the end of 2020 , the accounting records reffected total assets of $818,000 (\$54,000 cash, $600,000 land, $54,000 equipment, and $110,000 bulldings), total liabilities of $348,000 ishort-term notes payable of $74,000 and long-term notes payable of $274,000 ), and shareholders' equity of $470,000 ( $100,000 contributed capital and $370,000 retained earnings). The following summarized events occurred during January 2021 . a. Soid 8,000 additional shares to the original organizers for a total of $80,000cash b. Purchased a building for $46,000, equipment for $12,000, and four acres of land for $11,000, paid $9,000 in cast 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 $5,000 cash to another company d Purchased short-term investments for $12,500 cash. e. One shareholder reported to the company that he sold 300 East Hill shares to another shareholder for $3.000 cash. f. Lent $5,200 to one of the shareholders for moving costs, receiving a signed six-month note from the shareholder. Required: 1. Was East Hill Home Healthcare Senvices organized as a sole proprietorship, a partnership, or a corporation? Sole proprietorship Partnership Corporation 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 Healtheare Services. (If a transoction does not require an entry, leove the cells blank. Enter any decreoses to account bolances with a minus sign.) 3. This part of the question is not part of your Connect assignment. 4. Based only on the completed tabulation, provide the following amounts at January 31,2021 . 5. Compute the current ratio at January 31, 2021. (Round the final answer to 2 decimal places.)

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

High Performance Cloud Auditing And Applications

Authors: Keesook J. Han, Baek-Young Choi, Sejun Song

1st Edition

1493944355, 978-1493944354

More Books

Students also viewed these Accounting questions

Question

8. Explain the contact hypothesis.

Answered: 1 week ago

Question

2. Define the grand narrative.

Answered: 1 week ago