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: Cash 6,800 - Short-Term Investments 5,500 Short Jsou lavestments Property and Equipment 4,200 | Propertizoand Equipment Liabilities: Notes Payable (current) Notes Payable (noncurrect) 3,400 2,000 Common Stock Retained Earnings Additional Paid-in Capital 1,100 Additional Padd-in capital 5,200 Retained Earnings 4,800 1,100 5, 200 4,800 Required: 1. Using the data from these T-accounts, determine the amounts for the following on January 1 of the current year: 2. Prepare journal entries for transactions (a) through (e) for the current year. a. Borrowed $7,000 from a local bank, signing a note due in three years. b. Sold $4,500 of the investments for $4,500 cash. c. Sold one-half of the property and equipment for $2,100 in cash. d. Declared $2,000 in cash dividends to stockholders. e. Paid dividends to stockholders. 3. Enter the effects of the transactions in 2. above in the T-accounts. 4. Prepare a trial balance at December 31. 5. Prepare a classified balance sheet at December 31 of the current year in good form. 6. Other stockholders' equity items Calculate the current ratio at December 31 of the current year. If the industry average for the current ratio is 1.38. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Using the data from these T-accounts, determine the amounts for the following on January 1 of the current year: Assets abilities + Stockholders' Equity Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Prepare journal entries for transactions (a) through (e) for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions of euros.) a. Borrowed $7,000 from a local bank, signing a note due in three years. b. Sold $4,500 of the investments for $4,500 cash. c. Sold one-half of the property and equipment for $2,100 in cash. d. Declared $2,000 in cash dividends to stockholders. e. Paid dividends to stockholders. Show less View transaction list Journal entry worksheet 2 3 4 5 Borrowed $7,000 from a local bank, signing a note due in three years. Note: Enter debits before credits. Transaction General Journal Debit Credit Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Prepare journal entries for transactions (a) through (e) for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions of euros.) a. Borrowed $7,000 from a local bank, signing a note due in three years. b. Sold $4,500 of the investments for $4,500 cash. c. Sold one-half of the property and equipment for $2,100 in cash. d. Declared $2,000 in cash dividends to stockholders. e. Paid dividends to stockholders. Show less View transaction list Journal entry worksheet
