Higgins Company began operations last year. You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At the start of the current year, Higgins's T-account balances were as follows: Assets: Cash Short-Term Investments Property and Equipment 4,500 2.500 3,000 Liabilities: Short-Term Notes Payable Long-Term Notes Payable 1,700 370 Common Stock Additional Paid-in Capital Retained Earnings 410 2,690 4,830 The following transactions occured in current year: a. Borrowed $3,600 from a local bank, signing a note due in three years. b. Sold $1,100 of the investments for $1,100 cash. C. Sold one-half of the property and equipment for $1,500 in cash. d. Declared and paid $360 in cash dividends to stockholders. Required: Prepare a classified balance sheet at December 31 of the current year. HIGGINS COMPANY Balance Sheet Assets Liabilities Current assets: Current liabilities: Total current liabilities 0 Required: Prepare a classified balance sheet at December 31 of the current year. HIGGINS COMPANY Balance Sheet Assets Liabilities Current assets: Current liabilities: Total current liabilities 0 Total current assets 0 Total liabilities 0 Non-current assets: Stockholders' Equity Total non-current assets 0 0 Total stockholders' equity 0 Total liabilities and stockholders' equity Total assets $ $ 0 Higgins Company began operations last year. You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At the start of the current year, Higgins's T-account balances were as follows: Assets: Cash Short-Term Investments Property and Equipment 4,500 2.500 3,000 Liabilities: Short-Term Notes Payable Long-Term Notes Payable 1,700 370 Common Stock Additional Paid-in Capital Retained Earnings 410 2,690 4,830 The following transactions occured in current year: a. Borrowed $3,600 from a local bank, signing a note due in three years. b. Sold $1,100 of the investments for $1,100 cash. C. Sold one-half of the property and equipment for $1,500 in cash. d. Declared and paid $360 in cash dividends to stockholders. Required: Prepare a classified balance sheet at December 31 of the current year. HIGGINS COMPANY Balance Sheet Assets Liabilities Current assets: Current liabilities: Total current liabilities 0 Required: Prepare a classified balance sheet at December 31 of the current year. HIGGINS COMPANY Balance Sheet Assets Liabilities Current assets: Current liabilities: Total current liabilities 0 Total current assets 0 Total liabilities 0 Non-current assets: Stockholders' Equity Total non-current assets 0 0 Total stockholders' equity 0 Total liabilities and stockholders' equity Total assets $ $ 0
