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E2-16 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing a Balance Sheet, and Evaluating the Current Ratio over Time as a Bank Loan Officer

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E2-16 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing a Balance Sheet, and Evaluating the Current Ratio over Time as a Bank Loan Officer LO2-4, 2-5 [The following information applies to the questions displayed below.) Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year: a. Received cash from investors in exchange for 11,000 shares of stock (par value of $1.00 per share) with a market value of $8 per share. b. Purchased land in Wisconsin for $23,000, 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 $11,000 each; paid $6,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $2,200 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 $5,750 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $29,200 cash for a vacant lot (land) in Canada for her personal use. Required: 3 1. Using the T-accounts, record the effects of transactions (a) through (f) by Bailey Delivery Company Beg Bal Cash 0 Short-Term Notes Receivable 0 Bog. Bal End Bal End. Bal Land 0 |Beg. Bal Equipment 0 Beg. Bal End. Bal End, Bal Short-Term Notes Payable Long-Term Notes Payable Beg. Bal 0 Beg Bal 0 End. Bal Common Stock Additional Paid-in Capital 0 Beg Bal es End. Bal Beg Bal Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Cash 0 Land, 0 Short-Term Notes Payable 0 Common Stock 0 Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Short-Term Notes Receivable 0 Equipment 0 Long-Term Notes Payable 0 Additional Paid-in Capital 0

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