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 5,000 Short-Term Investments 2,500 Property and Equipment 3,000 | Liabilities: Notes Payable (current) Notes Payable (noncurrect) 2,200 800 Common Stock Retained Earnings Additional Paid-in Capital 4,000 500 3,000 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 $4,000 from a local bank, signing a note due in three years. b. Sold $1,500 of the investments for $1,500 cash. C. Sold one-half of the property and equipment for $1,500 in cash. d. Declared $800 in cash dividends to stockholders. e. Paid dividends to stockholders. 3. Enter the effects of the transactions in Requirement 2 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. Calculate the current ratio at December 31 of the current year. Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required 1 2 3 4 5 6 Enter the effects of the transactions in Requirement 2 in the T-accounts. Cash Short-term Investments Beg. Bal. 5,000 Beg. Bal. (a) (b) (c) 10,500) 8,000 2,800X1 End. End. 26,300 Bal. Bal. Property & Equipment Notes Payable (current) Beg. Bal. Beg. Bal. End. End. Bal. Bal. Notes Payable (noncurrent) Dividends Payable Beg. Bal. Beg. Bal. End. End. Bal. Bal. Common Stock Beg. Bal. Additional Paid-in Capital Beg. Bal. End. Bal. End. Bal. Retained Earnings Beg. Bal. 5 Calculate the current ratio at December 31 of the current year. (Round your answer to 2 decimal places.) Current ratio 5.798