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 8,000 shares. To date, they are the only shareholders. At the end of 2020 , the accounting records reflected total assets of $794,000 ( $62,000 cash, $540,000 land, $62,000 equipment, and $130,000 buildings), total liabilities of $284,000 (short-term notes payable of $110,000 and long-term notes payable of $174,000), and shareholders' equity of $510,000 ( $100,000 contributed capital and $410,000 retained earnings). The following summarized events occurred during January 2021 : a. Sold 9,000 additional shares to the original organizers for a total of $90,000 cash. b. Purchased a building for $50,000, equipment for $13,000, and four acres of land for $10,000; paid $13,000 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 $3,500 cash to another company. d. Purchased short-term investments for $14,500 cash. e. One shareholder reported to the company that he sold 400 East Hill shares to another shareholder for $4,000 cash. f. Lent $5,600 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? 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 Healthcare Services. (If a transaction does not require an entry, leave the cells blank. Enter any decreases to account balances 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. 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 8,000 shares. To date, they are the only shareholders. At the end of 2020 , the accounting records reflected total assets of $794,000 ( $62,000 cash, $540,000 land, $62,000 equipment, and $130,000 buildings), total liabilities of $284,000 (short-term notes payable of $110,000 and long-term notes payable of $174,000), and shareholders' equity of $510,000 ( $100,000 contributed capital and $410,000 retained earnings). The following summarized events occurred during January 2021 : a. Sold 9,000 additional shares to the original organizers for a total of $90,000 cash. b. Purchased a building for $50,000, equipment for $13,000, and four acres of land for $10,000; paid $13,000 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 $3,500 cash to another company. d. Purchased short-term investments for $14,500 cash. e. One shareholder reported to the company that he sold 400 East Hill shares to another shareholder for $4,000 cash. f. Lent $5,600 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? 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 Healthcare Services. (If a transaction does not require an entry, leave the cells blank. Enter any decreases to account balances 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