Required information [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 10,000 shares of stock (par value of $1.00 per share) with a market value of $4 per share. b. Purchased land in Wisconsin for $16,000, 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 $10,000 each; paid $4,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,000 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 $4,000 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $27,600 cash for a vacant lot (land) in Canada for her personal use. 4 Required: 1. Using the T-accounts, record the effects of these transactions by Bailey Delivery Company. Beg. Bal. Cash 0 Short-Term Notes Receivable Beg. Bal. 0 (a) 10,000 4,000 (c) (e) 4,000 1,000 (d) End. Bal. 5,000 End. Bal. 4,000 Book Land Equipment Beg. Bal Beg. Bal. 0 (b) 16,000 4,000 (e) (c) 20,000 Hint (d) 1,000 Print End. Bal.. 12,000 End. Bal. 21,000 Short-Term Notes Payable Long-Term Notes Payable References Beg. Bal 0 Beg. Bal. 0 End. Bal End. Bal. Common Stock Additional Paid-in Capital Beg Bal 0 Beg Bal. 0 End. Bal End. Bal. 2. Prepare a trial balance at December 31, 2018. BAILEY DELIVERY COMPANY, INC. Trial Balance Cash Cash Short-term note receivable Land Equipment Short-term notes payable Long-term notes payable Common stock Additional paid-in capital Totals Debit Credit 3. Prepare a classified balance sheet for Bailey Delivery Company at December 31, 2018. BAILEY DELIVERY COMPANY, INC. Assets Current assets: Balance Sheet Liabilities Current liabilities: Total current liabilities Total current assets 0 Total liabilities 0 Non-current assets: Stockholders' equity Total non-current assets Total assets 0 Total stockholders' equity 0 0 Total liabilities and stockholders' equity $ 0 4. At the end of the next two years, Bailey Delivery Company reported the following amounts on its balance sheets: Current Assets December 31, 2020 $ 47,000 December 31, 2019 $52,000 Long-Term Assets 38,000 73,000 Total Assets 90,000 120,000 Short-Term Notes Payable 23,000 40,000 Long-Term Notes Payable 17,000 20,000 Total Liabilities 40,000 60,000 Stockholders' Equity 50,000 60,000 Compute the company's current ratio for 2018, 2019, and 2020. (Round your answers to 2 decimal places.) Year Current Ratio 2018 2019 2020