+ acation.com/ext/map/index.html?con conexternal browser=0&.launchUrlhttps%253A%252F%252Flms.mheducation.com%252Fm Saved ment 2 - Chapter 2 Lee Delivery Company was organized at the beginning of 2020. The following transactions occurred during 2020 (the ce year of operations) a. Received $48,500 cash from the organizers in exchange for shares in the new company b. Purchased land for $17,700 and signed a one-year note (at a 6 percent annual interest rate) c Bought two used delivery trucks for operating purposes at the start of the year at a cost of $13.400 each paid $6,700 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 $4,425 to Birkins Moving, which promised to pay in six months e Paid $3,700 cash to a truck repair shop for a new motor for one of the trucks. (Hint: Increase the account you used to re purchase of the trucks since the usefulness of the truck has been improved.) Traded the other truck and $7.700 cash for a new one. The old truck's fair value is $13.400. 9. Shareholder Jonah Lee paid $29,200 cash for a vacant lot (and) for his personal use. h Collected the amount of the note due from Burkins Moving in (d. Paid one-third of the principal of the note due for the delivery trucks in (c) Required: 1. Post the above transactions into the appropriate T-accounts, beginning balances is $0 for all accounts. Short Term Notes Receivable es Bog. bal ta Cash 0 48.500 Beg bal 6.700 3,700 6.700 End bal 31,400 End. bal Land 0 Equipment Beg ball Beg bal End bal End, bal Short Term Nos Payable Beg bal OB TI Required: 1. Post the above transactions into the appropriate T-accounts, beginning balances is $0 for all accounts. Cash Short-Term Notes Receivable 0 Beg bal. Beg bal. 0 48,500 a 6.700 C. 3,700. 6.7000 End, bal 31,400 End, bal Land 0 Equipment 0 Beg. bal Beg bal End bal End, bal Short-Term Notes Payable Long-Term Notes Payable 0 Beg bal o Bog bal End, bal End, bal Contributed Capital 0 Beg bal End bal 2-a. Prepare a classified statement of financial position for Lee Delivery Company at the end of 2020. LEE DELIVERY COMPANY Statement of Financial Position As at December 31, 2020 Assets Liabilities Current assets: Current liabilities: Total current liabilities Total liabilities Total current assets Non-current assets: Shareholders' Equity Total shareholders' equity Total liabilities and shareholders' equity Total assets 2-5. Compute the current ratio at that date (Round the final answer to 2 decimal places.) Current ratio 3. At the end of the next two years, Lee Delivery Company reported the following amounts on its statements of financial position: Current assets Non-current assets Total assets Short-term notes payable Long-term notes payable Total liabilities Shareholders' equity December 31, December 31, 2021 2022 $ 60,500 $ 55,500 46,500 81,500 107,000 137,000 31,500 48,500 25. See 28.500 57,000 77,000 50,000 60,000 3.a. Compute the company'surrent ratio for 2020 2021, and 2022. (Round the final answers to 2 decimal places.) 2020 2021 2022 Current ratio 4. At the beginning of 2023, Lee Delivery Company applied to your bank for a $50,000 short-term loan to expand the business. The vice-president of the bank asked you to review the information and make a recommendation on lending the funds based solely on the results of the current ratio. What recommendation would you make to the bank's vice-president about lending the money to Lee Delivery Company? Should not extend loan Should extend loan TI Required: 1. Post the above transactions into the appropriate T-accounts, beginning balances is $0 for all accounts. Cash Short-Term Notes Receivable 0 Beg bal. Beg bal. 0 48,500 a 6.700 C. 3,700. 6.7000 End, bal 31,400 End, bal Land 0 Equipment 0 Beg. bal Beg bal End bal End, bal Short-Term Notes Payable Long-Term Notes Payable 0 Beg bal o Bog bal End, bal End, bal Contributed Capital 0 Beg bal End bal 2-a. Prepare a classified statement of financial position for Lee Delivery Company at the end of 2020. LEE DELIVERY COMPANY Statement of Financial Position As at December 31, 2020 Assets Liabilities Current assets: Current liabilities: Total current liabilities Total liabilities Total current assets Non-current assets: Shareholders' Equity Total shareholders' equity Total liabilities and shareholders' equity Total assets 2-5. Compute the current ratio at that date (Round the final answer to 2 decimal places.) Current ratio 3. At the end of the next two years, Lee Delivery Company reported the following amounts on its statements of financial position: Current assets Non-current assets Total assets Short-term notes payable Long-term notes payable Total liabilities Shareholders' equity December 31, December 31, 2021 2022 $ 60,500 $ 55,500 46,500 81,500 107,000 137,000 31,500 48,500 25. See 28.500 57,000 77,000 50,000 60,000 3.a. Compute the company'surrent ratio for 2020 2021, and 2022. (Round the final answers to 2 decimal places.) 2020 2021 2022 Current ratio 4. At the beginning of 2023, Lee Delivery Company applied to your bank for a $50,000 short-term loan to expand the business. The vice-president of the bank asked you to review the information and make a recommendation on lending the funds based solely on the results of the current ratio. What recommendation would you make to the bank's vice-president about lending the money to Lee Delivery Company? Should not extend loan Should extend loan