Complete this question by entering your answers in the tabs below.

Using the data from the T$-$accounts given, complete the accounting equation on January $1$ of the current year.

Assets

Stockholders' Equity Prepare journal entries for transactions $($a$)$ through $($e$)$ for the current year.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first acco

a$.$ Borrowed $$11,500$ from a local bank, signing a note due in three years.

b$.$ Sold $$9,000$ of the investments for $$9,000$ cash.

c$.$ Sold one$-$half of the property and equipment for $$3,000$ in cash.

d$.$ Declared $$3,800$ in cash dividends to stockholders.

e$.$ Paid dividends to stockholders.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

Borrowed $$11,500$ from a local bank, signing a note due in three years.

Note: Enter debits before credits. Higgins Company began operations last year. You are a member of the management team investigating expansion ideas that will

require borrowing funds from banks. On January $1,$ the start of the current year, Higgins' T$-$account balances were as follows:

Assets:

Liabilities:

Stockholders' Equity:

Using the data from the T$-$accounts given, complete the accounting equation on January $1$ of the current year.

Prepare journal entries for transactions $($a$)$ through $($e$)$ for the current year.

a$.$ Borrowed $$11,500$ from a local bank, signing a note due in three years.

b$.$ Sold $$9,000$ of the investments for $$9,000$ cash.

c$.$ Sold one$-$half of the property and equipment for $$3,000$ in cash.

d$.$ Declared $$3,800$ in cash dividends to stockholders.

e$.$ Paid dividends to stockholders.

Enter the effects of the transactions in Requirement $2$ in the T$-$accounts.

Prepare a trial balance at December $31.$ Only include those accounts with a balance at year end.

Prepare a classified balance sheet at December $31$ of the current year.

Calculate the current ratio at December $31$ of the current year.