3.5 points eBook Hint Print References Higgins Company began operations last year. You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. On January 1, the start of the current year, Higgins' T-account balances were as follows: Assets: Debit Liabilities: Cash Debit 7,100 Notes Payable (current) Debit Credit Stockholders' Equity: Required: Credit Common Stock Credit 3,600 1,200 Short-Term Investments Debit 6,000 Credit Notes Payable (noncurrent) Debit Credit 2,200 Additional Paid-in Capital Debit Credit 5,400 Property and Equipment Debit Credit 4,400 Retained Earnings Debit Credit 5,100

Enter the effects of the transactions in Requirement 2 in the T-accounts. 1. Using the data from the T-accounts given, complete the accounting equation on January 1 of the current year. 2. Prepare journal entries for transactions (a) through (e) for the current year. a. Borrowed $7,500 from a local bank, signing a note due in three years. b. Sold $5,000 of the investments for $5,000 cash. c. Sold one-half of the property and equipment for $2,200 in cash. d. Declared $2,200 in cash dividends to stockholdeIs. e. Paid dividends to stockholders. 3. Enter the effects of the transactions in Requirement 2 in the T-accounts. 4. Prepare a trial balance at December 31. 5. Prepare a classified balance sheet at December 31 of the current year. 6. Calculate the current ratio at December 31 of the current year. Complete this question by entering your answers in the tabs below. Calculate the current ratio at December 31 of the current year. Note: Round your answer to 2 decimal places. Prepare a trial balance at December 31 . Higgins Company began operations last year. You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. On January 1, the start of the curtent year, Higgins' T-account balances were as follows: Journal entry worksheet Borrowed $7,500 from a local bank, signing a note due in three years. Note: Enter debits before credits. quired Homework Prepare a classified balance sheet at December 31 of the current year