a.Prepare the journal entry for each transaction.

b.Create T-accountswith beginning balances. Post each journal entry to the appropriate T-account.Create new accounts as necessary.

c.Prepare comparative balance sheetsat December 31, 2016 and January 31, 2017in properform.

d.Compute the current ratio at December31, 2016 and Janaury 31, 2017. Has liquidity improved or deteriorated?

The following information is p cember 31, 2016 Monthly Account Balances (in thousands of dollars) Accounts payable Accounts receivable Accrued wages payable Cash Common stock Dividends payable Interest payable Interest receivable Investments Land Long-term notes payable (due June 15, 2018) Prepaid expense:s Other noncurrent assets Plant and equipment Retained earnings Short-term notes payable Supplies Balance $ 7,750 6,440 3,600 20,000 14,600 1,500 1,100 50 2,660 5,000 4,000 1,800 800 15,200 10,400 11,000 2,000 Restoration entered into the following transactions during January 2017 1. Paid wages owed at December 31, 2016 2. Collected S5,500 on outstanding accounts receivable 3. Paid accounts payable of $7,000 4. Issued 1000 shares of common stock for $8 each. 5. Paid S11,000 on a short-term note payable including S750 of accrued interest 6. Purchased supplies worth S1,850 on account 7. Signed a contract with a new cleaning company. Agreed to pay $1,500 a month for cleaning the shop each night 8. Redeemed a six-month $2.660 certificate of deposit held as an investment. Proceeds including accrued interest totaled $2,710 Purchased shop equipment in exchange for $8,000 in cash and a note payable of S15,000 ue 31/1 9