Penny Cassidy has decided to start her business, Penny's Pool Service \& Supply, Incorporated (PPSS). There is much to do when starting a new business. Here are some transactions that have occurred in PPSS in March. a. Received $26,000 cash and a large delivery van with a value of $37,000 from Penny, who was given 4,100 shares of $0.10 par value common stock in exchange. b. Purchased land with a small office and warehouse by paying $10,500 cash and signing a 10-year note payable to the local bank for $80,500. The land has a value of $18,500 and the building's value is $72,500. Use separate accounts for land and buildings. c. Purchased new computer equipment from Dell for $2,600 cash, and purchased other office equipment for $4,100, signing a note payable due in six months to the office equipment manufacturer. d. Hired a receptionist for the office at a salary of $1,600 per month; the receptionist will begin working for PPSS starting in April. e. Paid $1,100 on the note payable to the bank [in (b) above] at the end of March (ignore interest). f. Purchased short-term investments in the stock of other companies for $5,100 cash. 9. Ordered $11,000 in inventory from Pool Corporation, Incorporated, a pool supply wholesaler, to be received in April. Required: 1. For each of the events, prepare journal entries if a transaction of the business exists, checking that debits equal credits. 2. Use the following T-accounts, and post each of the transactions to determine balances at March 31 . Because this is a new business, beginning balances are $0. 3. Prepare a trial balance on March 31 to check that debits equal crecits after the transactions are posted to the T-accounts. 4. From the trial balance, prepare a classified balance sheet at March 31 (before the beginning of operations in Apri). 5. For each of the events, indicate if it is an Investing activity. Financing activity or No Effect, and amount of the effect on cash flows. 6. Calculate the current ratio at March 31 . Journal entry worksheet 2 3 4 5 6 7 Record the receipt of $26,000 cash and a van valued at $37,000 in exchange for 4,100 shares with a par value of $0.10 per share. Note: Enter debits before credits. Journal entry worksheet 3 5 6 7 Record the purchase of land with a small office by paying $10,500 cash and signing a note payable for $80,500. The land has a value of $18,500 and the building's value is $72,500. Note: Enter debits before credits. Journal entry worksheet Record the purchase of a new computer for $2,600 cash and office equipment for $4,100, signing a short-term note payable due in six months. Note: Enter debits before credits. Journal entry worksheet (1) Record the hiring of a receptionist for a salary of $1,600 per month, starting in April. Note: Enter debits before credits. Journal entry worksheet 1 Record the payment of $1,100 on the note payable to the bank at the end of March (ignore interest). Note: Enter debits before credits. Journal entry worksheet Record the purchase of short-term investments in the stock of other companies for $5,100 cash. Note: Enter debits before credits. Journal entry worksheet 1 2 3 4 5 Record the $11,000 order of inventory from Pool Corporation, Incorporated, a pool supply wholesaler, to be recelved in April. Note: Enter debits before credits. Use the following T-accounts, and post each of the transactions to determine balances of March 31 . Because this is a new business, beginning balances are 50. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Equipment } \\ \hline Debit & & \multicolumn{2}{c|}{ Credit } \\ \hline Begining Balance & & & \\ \hline (c) & 4,100 & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Notes Payable (noncurrent) } \\ \hline \multicolumn{2}{|c|}{ Debit } \\ \hline Beginning Balance & & \\ \hline (e) & 1.100 & 4,100 & (c) \\ \hline \end{tabular} Additional Paid-in Capital Required 3 ? Prepare a trial balance on March 31 to check that debits equal credits after the transactions are posted to the T-accounts. PENNYS POOL SERVICE \& SUPPLY, INCORPORATED Trial Balance At March 31 Required 2 Required 4 ? From the trial balance, prepare a classified balance sheet at March 31 (before the beginning of operations in April (Decreases should be entered as negative amounts.) \begin{tabular}{|l|r|} \hline \multicolumn{1}{|c|}{ Total current liabilities } & \\ \hline & \\ \hline & \\ \hline Total liabilities & \\ \hline Stockhoiders' Equity: & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Total stockholders' equity & 0 \\ \hline Total liabilities and stockholders' equity & $ \\ \hline \end{tabular} Required 3 Required 5 For each of the events, indicate if it is an Investing activity, Financing activity or No Effect, and amount of the effect on cash flows. (Decreases should be entered as negative amounts.) 3. Prepare a trial balance on March 31 to check that debits equal credits after the transactions are posted to tine 1 -dcicoumis. 4. From the trial balance, prepare a classified balance sheet at March 31 (before the beginning of operations in Aprii). 5. For each of the events, indicate if it is an Investing activity, Financing activity or No Effect, and amount of the effect on cash f 6. Calculate the current ratio at March 31. Complete this question by entering your answers in the tabs below. Calculate the current ratio at March 31. (Round your answer to 3 decimal places.)