Required information E2-16 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing a Balance Sheet, and Evaluating the Current Ratio over Time as a Bank Loan Officer LO2-4, 2-5 [The following information applies to the questions displayed below.) Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year a. Received cash from investors in exchange for 14,000 shares of stock (par value of $1.00 per share) with a market value of $10 per share. b. Purchased land in Wisconsin for $24,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $11,000 each; paid $6,000 cash and signed a note due in three years for the rest (ignore interest). d. Pald $1,300 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been Improved) e. Sold one-fourth of the land for $6,000 to Pablo Development Corporation, which signed a six-month 1. Stockholder Helen Bailey paid $28,400 cash for a vacant lot (and) in Canada for her personal use. note. Required: 1. Using the T-accounts, record the effects of transactions (a) through (1) by Bailey Delivery Company. Cash Beg. Bal. 0 Short-Term Notes Receivable 0 6,000 140,000 Beg. Bal (e) 6,000 (C) 1,300 (d) End. Bal 132,700 End. Bal. 6,000 Land Equipment 0 Beg. Bal. (b) 0 24,000 6,000(e) Beg. Bal. (c) (d) 22,000 1,300 End. Bal 18,000 End. Bal. 23,300 Beg. Bal. Short-Term Notes Payable 0 24,000 (b) Beg, Bal. Long-Term Notes Payable 0 16,000 (C) End. Bal 24,000 End. Bal. 16,000 Common Stock Additional Paid-in Capital Beg. Bal 0 Beg. Bal 0 14,000(a) 126,000(a) End. Bal 14,000 End. Bal 126,000 2. Prepare a trial balance at December 31, 2018. BAILEY DELIVERY COMPANY, INC. Trial Balance Debit Credit Totals $ 0 $ 0 3. Prepare a classified balance sheet for Bailey Delivery Company at December 31, 2018. BAILEY DELIVERY COMPANY, INC. Balance Sheet Assets Liabilities Current assets: Current liabilities: os Total current liabilities 0 Total current assets 0 Total liabilities 0 Non-current assets: Stockholders' Equity Total non-current assets Total assets 0 0 Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0