$4$

Lee Dellvery Company was organized at the beginning of Year $1.$ The following transactions occurred during the year:

a$.$ Recelved $$47,500$ cash from the organizers in exchange for shares in the new company.

b$.$ Purchased land for $$17,500$ and signed a one$-$year note $($at a $6$ percent annual interest rate$).$

c$.$ Bought two used dellvery trucks for operating purposes at the start of the year at a cost of $$13,000$ each; paid $$6,500$ cash and signed a promissory note for the balance, payable over the next three years $($at an annual interest rate of $7$ percent$).$

d$.$ Sold one$-$fourth of the land for $$4,375$ to Blikins Moving, which promised to pay in six months.

e$.$ Paid $$3,500$ cash to a truck repair shop for a new motor for one of the trucks. $($Hint: Increase the account you used to record the purchase of the trucks slnce the usefulness of the truck has been Improved.$)$

f$.$ Traded the other truck and $$7,500$ cash for a new one. The old truck's falr value is $$13,000.$

g$.$ Shareholder Jonah Lee pald $$29,000$ cash for a vacant lot $($land$)$ for his personal use.

h$.$ Collected the amount of the note due from Birkins Moving in $($d$).$

i$.$ Paid one$-$third of the principal of the note due for the dellivery trucks in $($c$).$

Required:

Post the above transactions into the appropriate $T-$accounts, beginning balances is $$0$ for all accounts.

$\backslash$table$[[$Cash$,$Short$-$Term Notes Receivable$],[$Beg$.$ bal.,$0,,,$Beg. bal.,$0,,],[$a$.,47,500,6,500,$c$.,$d$.,4,375,4,375,$h$.],[$d$.,4,375,3,500,$e$.,$F$,,,],[,,7,500,$f$.,?,,,],[$F$,,6,500,$i$.,$F$,,,],[$End$.$ bal.,$27,875,,,$End. bal.,,,$],[$Land$,$Equipment$],[$Beg$.$ bal.,$0,,,$Beg. bal.,$0,,],[$b$.,17,500,4,375,$d$.,$c$.,26,000,,],[,,,,$e$.,3,500,,1],[,,,,$p$,,13,000,$f$.],[$End$.$ bal.,$13,125,,,$End. bal.,$16,500,,],[$Short$-$Term Notes Payable,Long$-$Term Notes Payable$],[,,0,$Beg. bal.,,,$0,$Beg. bal.$],[,,17,500,$b$.,$fi$.,6,500,19,500,$c$.],[,,,,,,,$P$],[,,,$y$,,,,17],[,,17,500,$End. bal.,,,$13,000,$End. bal.$],[$Contributed Capital,,,,$],[,,0,$Beg. bal.,,,,$],[,,47,500,$a$.,,,,],[,,,,,,,],[,,,,,,,],[,,47,500,$End. bal.,,,,$]]2-$a$.$ Prepare a classified statement of financial position for Lee Dellvery Company at the end of Year $1.$

$2-$b$.$ Compute the current ratio at that date. $($Round the final answer to $2$ decimal places.$)$

Current ratio

At the end of the next two years, Lee Delivery Company reported the following amounts on its statements of financial position:

$3-$a$.$ Compute the company's current ratio for Years $1,2,$ and $3.($Round the final answers to $2$ declmal places.$)$