Lee Delivery Company was organized at the beginning of 2020. The following transactions occurred during 2020 (the company's first year of operations): a. Received $42,000 cash from the organizers in exchange for shares in the new company. b. Purchased land for $16,400 and signed a one-year note (at a 6 percent annual interest rate). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $10,800 each; paid $5,400 cash and signed a promissory note for the balance, payable over the next three years (at an annual interest rate of 7 percent). d. Sold one-fourth of the land for $4,100 to Birkins Moving, which promised to pay in six months. e. Paid $2,400 cash to a truck repair shop for a new motor for one of the trucks. (Hint: Increase the account you used to record the purchase of the trucks since the usefulness of the truck has been improved.) f. Traded the other truck and $6,400 cash for a new one. The old truck's fair value is $10,800. g. Shareholder Jonah Lee paid $27,900 cash for a vacant lot (land) for his personal use. h. Collected the amount of the note due from Birkins Moving in (d). i. Paid one-third of the principal of the note due for the delivery trucks in (c). Required: 1. Post the above transactions into the appropriate T-accounts, beginning balances is $0 for all accounts. Beg. bal. End. bal. Cash 0 Beg. bal. Short-Term Notes Receivable 0 End. bal. Beg. bal. End. bal. Land 0 Short-Term Notes Payable 0 Beg. bal. End. bal. Contributed Capital 0 Beg. bal. End. bal. Beg. bal. End. bal. Equipment 0 Long-Term Notes Payable 0 Beg. bal. End. bal. 2-a. Prepare a classified statement of financial position for Lee Delivery Company at the end of 2020. LEE DELIVERY COMPANY Statement of Financial Position As at December 31, 2020 Assets Liabilities Current assets: Current liabilities: Total current assets Non-current assets: Total assets Total current liabilities 0 0 Total liabilities 0 Shareholders' Equity Total shareholders' equity 0 0 Total liabilities and shareholders' equity 0 2-b. Compute the current ratio at that date. (Round the final answer to 2 decimal places.) Current ratio 3. At the end of the next two years, Lee Delivery Company reported the following amounts on its statements of financial position: Current assets Non-current assets Total assets Short-term notes payable Long-term notes payable Total liabilities Shareholders' equity December 31, 2021 December 31, 2022 $ 54,000 $ 49,000 40,000 75,000 94,000 124,000 25,000 42,000 19,000 22,000 44,000 64,000 50,000 60,000 3-a. Compute the company's current ratio for 2020, 2021, and 2022. (Round the final answers to 2 decimal places.) Current ratio 2020 2021 2022 Current assets Non-current assets Total assets Short-term notes payable Long-term notes payable Total liabilities Shareholders' equity 31, 2021 $ 54,000 40,000 $ 31, 2022 49,000 75,000 94,000 124,000 25,000 42,000 19,000 22,000 44,000 64,000 50,000 60,000 3-a. Compute the company's current ratio for 2020, 2021, and 2022. (Round the final answers to 2 decimal places.) Current ratio 2020 2021 2022 4. At the beginning of 2023, Lee Delivery Company applied to your bank for a $50,000 short-term loan to expand the business. The vice-president of the bank asked you to review the information and make a recommendation on lending the funds based solely on the results of the current ratio. What recommendation would you make to the bank's vice-president about lending the money to Lee Delivery Company? Should extend loan O Should not extend loan