Selected balance sheet accounts for Tibbetts Company on September 30, 2016, are as follows:

Cash $ 44,800

Marketable securities 126,000

Accounts receivable, net 154,000

Inventory 175,000

Prepaid expenses 19,600

Total current assets $ 519,400

Accounts payable $ 108,000

Other accrued liabilities 26,400

Short-term debt 48,000

Total current liabilities $ 182,400

Required:

a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2016. (Round "Ratio" answers to 2 decimal places.)

b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2017.

Credit sales for the year amounted to $336,000. The cost of goods sold was $218,400.

Collected accounts receivable, $352,800.

Purchased inventory on account, $235,200.

Issued 700 shares of common stock for $25 per share.

Wrote off $9,800 of uncollectible accounts using the allowance for bad debts.

Declared and paid a cash dividend, $28,000.

Sold marketable securities costing $36,400 for $43,400 in cash.

Recorded insurance expense for the year, $16,800. The premium for the policy was paid in June 2016.

Borrowed cash on a short-term bank loan, $14,000.

Repaid principal of $56,000 and interest of $4,200 on a long-term bank loan.

b-1. Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b-2. Indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use + for increase, for decrease, and (NE) for no effect.