AP2-8

Q A Durgers! AP2-8 Analyzing the Effects of Transactions by Using T-Accounts, Preparing a Statement of Financial Position, and Interpreting the Current Ratio as a Bank Loan Officer ( P2-8) 5 LO2-5, 2 2-6 Chu Delivery Company was organized in 2021. The following transactions occurred during 2021: a. Received $40,000 cash from organizers in exchange for shares in the new company. b. Purchased land for $12,000, signing a one-year note. c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $10,000 each; paid $4,000 cash and signed a note due in three years for the rest (ignore interest). d. Sold one-fourth of the land for $3,000 to Pablo Moving, which signed a six-month note. e. Paid $1,000 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 since the productive life of the truck has been improved.) f. Shareholder Jingbi Chu paid $27,600 from her personal savings to purchase a vacant lot (land) for her personal use. Required: 1. Set up appropriate T-accounts with beginning balances of zero for cash, short-term notes receivable, land, equipment, short- term notes payable, long-term notes payable, and contributed capital. Using the T-accounts, record the effects of these