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 $42,500 cash from the organizers in exchange for shares in the new company. b. Purchased land for $16,500 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 $11,000 each; paid $5,500 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 $4,125 to Birkins Moving, which promised to pay in six months. e. Paid $2,500 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 $6,500 cash for a new one. The old truck's fair value is $11,000. g. Shareholder Jonah Lee paid $28,000 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 Required: 1. Post the above transactions into the appropriate T-accounts, beginning balances is $0 for all accounts. Cash Short-Term Notes Receivable 0 Beg. bal. Beg. bal. End. bal. End. bal. Land Equipment Beg. bal. 0 Beg. bal. b. 16,500 4,125 d. End. bal. 20,625 End. bal. Short-Term Notes Payable Long-Term Notes Payable 0 Beg. bal. O Beg. bal. End. bal. End. bal. Contributed Capital 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 liabilities 0 0 Total liabilities 0 Total current assets Non-current assets: Shareholders' Equity 0 Total shareholders' equity Total liabilities and shareholders' equity Total assets $ 0 $ 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 $ 54,500 40,500 95,000 25,500 19,500 45,000 50,000 December 31, 2022 $ 49,500 75,500 125,000 42,500 22,500 65,000 60,000 3-a. Compute the company's current ratio for 2020, 2021, and 2022. (Round the final answers to 2 decimal places.) 2020 2021 2022 Current ratio 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 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 $42,500 cash from the organizers in exchange for shares in the new company. b. Purchased land for $16,500 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 $11,000 each; paid $5,500 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 $4,125 to Birkins Moving, which promised to pay in six months. e. Paid $2,500 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 $6,500 cash for a new one. The old truck's fair value is $11,000. g. Shareholder Jonah Lee paid $28,000 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 Required: 1. Post the above transactions into the appropriate T-accounts, beginning balances is $0 for all accounts. Cash Short-Term Notes Receivable 0 Beg. bal. Beg. bal. End. bal. End. bal. Land Equipment Beg. bal. 0 Beg. bal. b. 16,500 4,125 d. End. bal. 20,625 End. bal. Short-Term Notes Payable Long-Term Notes Payable 0 Beg. bal. O Beg. bal. End. bal. End. bal. Contributed Capital 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 liabilities 0 0 Total liabilities 0 Total current assets Non-current assets: Shareholders' Equity 0 Total shareholders' equity Total liabilities and shareholders' equity Total assets $ 0 $ 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 $ 54,500 40,500 95,000 25,500 19,500 45,000 50,000 December 31, 2022 $ 49,500 75,500 125,000 42,500 22,500 65,000 60,000 3-a. Compute the company's current ratio for 2020, 2021, and 2022. (Round the final answers to 2 decimal places.) 2020 2021 2022 Current ratio 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