Bailey Delivery Company, Incorporated, was organized in 2021 in Wisconsin. The following transactions occurred during the year: a. Received cash from investors in exchange for 17,000 shares of stock (par value of $1.00 per share) with a market value of $7 per share. b. Purchased land in Wisconsin for $22,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $15,000 each; paid $5,000 cash and signed a note due in three years for the rest (ignore interest). d. 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) e. Sold one-fourth of the land for $5,500 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $29,400 cash for a vacant lot (land) in Canada for her personal use. 2. Prepare a trial balance at December 31, 2021. Cash Land BAILEY DELIVERY COMPANY, INCORPORATED Trial Balance At December 31, 2021 Equipment Short-term note receivable Short-term notes payable Common stock Long-term notes payable Additional paid-in-capital Totals Debit Credit $ 119,000 16,500 31,500 5,500 22,000 17,000 20,000 102,000 $ 172,500 $ 161,000