Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year:

1. Received cash from investors in exchange for 11,000 shares of stock (par value of $1.00 per share) with a market value of $7 per share.
2. Purchased land in Wisconsin for $22,000, signing a one-year note (ignore interest).
3. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $13,000 each; paid $5,000 cash and signed a note due in three years for the rest (ignore interest).
4. Paid $1,500 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)
5. Sold one-fourth of the land for $5,500 to Pablo Development Corporation, which signed a six-month note.
6. Stockholder Helen Bailey paid $28,000 cash for a vacant lot (land) in Canada for her personal use.

part 1. Using the T-accounts, record the effects of transactions (a) through (f) by Bailey Delivery Company.

part 2. Prepare a trial balance at December 31, 2018

part 3. Prepare a classified balance sheet for Bailey Delivery Company at December 31, 2018.

part 4. Compute the companys current ratio for 2018, 2019, and 2020.

! Required information BAILEY DELIVERY COMPANY INC Assessment Tool iFrame Trial Balance Debit Credit 11,000 66,000 Common stock Additional paid-in capital Cash Land Long-term notes payable Short-term notes payable Equipment Short-term note receivable Totals $ 0 $ 77,000 Required information Required: 1. Using the T-accounts, record the effects of transactions (a) through (f) by Bailey Delivery Company Cash Beg Bal. Short-Term Notes Receivable 0 0 Beg, Bal End. Bal. End. Bal Land Beg Bal 0 Equipment 0 Beg. Bal ces End. Bal. End. Bal. Short-Term Notes Payable Long-Term Notes Payable