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 5,300 Short-Term Investments 3,000 Property and Equipment 3,200 Liabilities: Notes Payable (current) Notes Payable (noncurrect) 2,400 1,000 Common Stock Additional Paid-in Capital Retained Earnings 600 4,200 3,300 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 $4,500 from a local bank, signing a note due in three years. b. Sold $2,000 of the investments for $2,000 cash. c. Sold one-half of the property and equipment for $1,600 in cash. d. Declared $1,000 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 1.48.