P2-2 Determining Financial Statement Effects of Various Transactions, and Interpreting the Current Ratio LO2-3, 2-4, 2-6 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 8,500 shares. To date, they are the only shareholders. At the end of 2020, the accounting records reflected total assets of $750,000 ($70,000 cash, $460,000 land, $70,000 equipment, and $150,000 buildings), total liabilities of $250,000 (short-term notes payable of $125,000 and long-term notes payable of $125,000), and shareholders' equity of $500,000 ($100,000 contributed capital and $400,000 retained earnings). The following summarized events occurred during January 2021: a. Sold 7,000 additional shares to the original organizers for a total of $70,000 cash. b. Purchased a building for $54,000, equipment for $14,000, and four acres of land for $14,000; 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 $16,500 cash. e. One shareholder reported to the company that he sold 500 East Hill shares to another shareholder for $5,000 cash. Lent $6,000 to one of the shareholders 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? O Sole proprietorship O Partnership