Answer:
1. Was East Hill Home Healthcare Services organized as a sole proprietorship, a partnership, or a corporation?
East Hill Home Healthcare Services should be considered a closed corporation since there is a small number of stockholders and its shares are not traded in an open trade market.
2. During the current year, the records of the company were inadequate. You were asked to prepare the summary of the preceding transactions.
Since there is not enough room here, I used an excel spreadsheet.
4. What amounts do you need? If some amount is missing, look at the attached PDF.
total assets = $870,000
total liabilities = $280,000
total equity = $590,000
current assets = $134,500
current liabilities = $100,000
5. Compute the current ratio for the current year
current ratio = current assets / current liabilities = $134,500 / $100,000 = 1.345
