P$2-2($Algo$)$ Determining Financial Statement Effects of Various Transactions, and Interpreting the Current Ratio LO$2-3,2-4,2-6$

East Hill Home Healthcare Services was organized on January $1,2022$ by four friends. Each organizer invested $$10,000$ in the company and, in turn, was issued $9,000$ shares. To date, they are the only shareholders. At the end of $2023,$ the accounting records reflected total assets of $$818,000($ $$54,000$ cash, $$600,000$ land, $$54,000$ equipment, and $$110,000$ buildings$),$ total liabilities of $$348,000($short$-$term notes payable of $$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 $2024$ :

a$.$ Sold $8,000$ additional shares to the original organizers for a total of $$80,000$ cash.

b$.$ Purchased a building for $$46,000,$ equipment for $$12,000,$ and four acres of land for $$11,000$; paid $$9,000$ 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 $$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:

Was East Hill Home Healthcare Services organized as a sole proprietorship, a partnership, or a corporation?

Sole proprietorship

Partnership

Corporation

During January $2024,$ 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. $($If a transaction does not require an entry, leave the cells blank. Enter any decreases to account balances with a minus sign.$)$

During January $2024,$ 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. $($If a transaction does not require an entry, leave the cells blank. Enter any decreases to account balances with a minus sign.$)$

This part of the question is not part of your Connect assignment.

Based only on the completed tabulation, provide the following amounts at January $31,2024.$

$\backslash$table$[[,,],[$a$.,$Total assets,$],[$b$.,$Total liabilities,$],[$c$.,$Total shareholders' equity,$],[$d$.,$Cash balance,$],[$e$.,$Total current assets,$]]$

Compute the current ratio at January $31,2024.($Round the final answer to $2$ decimal places.$)$

Current ratio

During January $2024,$ 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. $($If a transaction does not require an entry, leave the cells blank. Enter any decreases to account balances with a minus sign.$)$

$\backslash$table$[[,,$Assets,,,,,$=,$Liabilities,$+,$Shareholders' Equity$],[,$Cash,$\backslash$table$[[$Short$-$Term$],[$Investments$]],\backslash$table$[[$Notes$],[$Receivable$]],$Land,Buildings,Equipment,,$\backslash$table$[[$Short$-],[$Term$],[$Notes$],[$Payable$]],\backslash$table$[[$Long$-$Term$],[$Notes$],[$Payable$]],,\backslash$table$[[$Contributed$],[$Capital$]],\backslash$table$[[$Retained$],[$Earnings$]]],[$Beg$.,54,000,$dots,,$600,000,110,000,54,000,=,74,000,274,000,+,100,000,370,000],[$a$.,80,000,,,,,,=,,,+,$F$,],[$b$.,,,,,=$c$.,,,,,,,=,,,+,,],[$d$.,],[,,,,,,,,,,,,,,,],[,,,,,,,,,,,,]$