East Hill Home Healthcare Services was organized on January 1, 2016, by four friends. Each organizer invested $10,000 in the company and, in turn, was issued 8,500 shares. To date, they are the only shareholders. At the end of 2017, the accounting records reflected total assets of $891,000 ($88,000 cash, $520,000 land, $88,000 equipment, and $195,000 buildings), total liabilities of $351,000 (short-term notes payable of $100,000 and long-term notes payable of $251,000), and shareholders equity of $540,000 ($100,000 contributed capital and $440,000 retained earnings). The following summarized events occurred during January 2018:

a.

Sold 7,000 additional shares to the original organizers for a total of $70,000 cash.

b.

Purchased a building for $63,000, equipment for $16,000, and four acres of land for $13,000; paid $12,000 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 $4,000 cash to another company.

d. Purchased short-term investments for $17,500 cash.

e.

One shareholder reported to the company that he sold 700 East Hill shares to another shareholder for $7,000 cash.

f.

Lent $6,900 to one of the shareholders for moving costs, receiving a signed six-month note from the shareholder.

P2-2 Determining Financial Statement Effects of Various Transactions, and Interpreting the Current Ratio L02-3, 2-4, 2-6 East Hill Home Healthcare Services was organized on January 1, 2018, by four friends. Each organizer nvested $10,000 in the company and, in turn, was issued 8,500 shares. To date, they are the only shareholders. At the end of 2017, the accounting records reflected total assets of $891,000 (588,000 cash, $520,000 land, $88,000 equipment, and $195,000 buidings), total liabilinies of $351,000 (short-term notes payable of $100,000 and long-term notes payable of $251,000), and shareholders' equity of $540,000 $100,000 contibuted capital and $440,000 retained earnings). The following summarized events ocourred during January 2018 a. Sold 7,000 additional shares to the original organizers for a total of $70,000 cash b. Purchased a building for $63,000, equipment for $16,000, and four acres of land for $13,000; paid $12,000 in cash and signed a note for the balance (due in 15 years). (Hint: Five dierent accounts are affected.) c Sold one acre of land aoquired in (b) for $4,000 cash to another company d. Purchased short-term investments for $17,500 cash. e. One shareholder reported to the company that he sold 700 East Hill shares to another shareholder for $7,000 cash Lent $6,900 to one of the shareholders for moving costs, receiving a signed six-month note from the Required: 1. Was East Hill Home Healthcare Services organized as a sole proprietorship, a partnership, or a Sole proprietorship Partnership 2. During January 2018, the records of the company were inadequate. You were asked to prepare the summary of the preceding transactions. To develop quick assessment of their economic effects on East H Home Healthcare Services. (If a transaction does not require an entry, leave the cells blank. Enter any decreases to account balances with a minus sign