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Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year: Bailey Delivery Company, Inc., was organized in 2018
Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year:
Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year:
- Received cash from investors in exchange for 10,000 shares of stock (par value of $1.00 per share) with a market value of $11 per share.
- Purchased land in Wisconsin for $22,000, signing a one-year note (ignore interest).
- Bought two used delivery trucks for operating purposes at the start of the year at a cost of $13,000 each; paid $6,000 cash and signed a note due in three years for the rest (ignore interest).
- Paid $2,600 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved)
- Sold one-fourth of the land for $5,500 to Pablo Development Corporation, which signed a six-month note.
- Stockholder Helen Bailey paid $28,900 cash for a vacant lot (land) in Canada for her personal use.
Required: 1. Using the T-accounts, record the effects of transactions (a) through (f) by Bailey Delivery Company. Cash Short-Term Notes Receivable 0 Beg. Bal. 0 Beg. Bal. End. Bal. End. Bal. Land 0 Equipment 0 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Short-Term Notes Payable 0 Long-Term Notes Payable Beg. Bal. Beg. Bal. 0 End. Bal. End. Bal. Common Stock Additional Paid-in Capital Beg. Bal. 0 Beg. Bal. 0 End. Bal. End. Bal. E2-16 Part 2 2. Prepare a trial balance at December 31, 2018. BAILEY DELIVERY COMPANY, INC. Trial Balance Debit Credit Totals 0 $ 0 E2-16 Part 3 3. Prepare a classified balance sheet for Bailey Delivery Company at December 31, 2018. BAILEY DELIVERY COMPANY, INC. Balance Sheet Assets Liabilities Current assets: Current liabilities: Total current liabilities 0 Total current assets 0 Total liabilities 0 Non-current assets: Stockholders' Equity 0 Total non-current assets Total assets 0 Total stockholders' equity 0 Total liabilities and stockholders' equity 0 E2-18 (Algo) Inferring Typical Investing and Financing Activities in Accounts LO 2-4 The following T-accounts indicate the effects of normal business transactions: Notes Payable 1/1 1/1 Equipment 570 330 280 Notes Receivable 90 365 320 1/1 210 180 130 12/31 12/31 12/31 Required: 2. For each T-account, compute the missing amounts. Missing amounts Equipment Notes receivable Notes payable
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