Stockholders' Equity: Required: 1. Using the data from the T-accounts given, complete the accounting equation on January 1 of the current year. 2. Prepare journal entries for transactions (a) through (e) for the current year. a. Borrowed $10,500 from a local bank, signing a note due in three years. b. Sold $8,000 of the investments for $8,000 cash. c. Sold one-half of the property and equipment for $2,800 in cash. \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ BIGGINS COMPANY } \\ \hline \multicolumn{2}{|c|}{ Balance Sheet } \\ \hline Assets & \\ \hline Current Assets: & \\ \hline Cash & \\ \hline Short-term investments & \\ \hline Property and equipment & \\ \hline Total current assets & \\ \hline \multicolumn{2}{|c|}{} \\ \hline Total assets & $ \\ \hline Liabilities and Stockholders' Equity & \\ \hline Current Liabilities: & \\ \hline Notes Payable (current) & \\ \hline & \\ \hline \end{tabular} 1. Using the data from the T-accounts given, complete the accounting equation on January 1 of the current ye 2. Prepare journal entries for transactions (a) through (e) for the current year. a. Borrowed $10,500 from a local bank, signing a note due in three years. b. Sold $8,000 of the investments for $8,000 cash. c. Sold one-half of the property and equipment for $2,800 in cash. d. Declared $3,400 in cash dividends to stockholders. e. Paid dividends to stockholders. 3. Enter the effects of the transactions in Requirement 2 in the T-accounts. 4. Prepare a trial balance at December 31. 5. Prepare a classified balance sheet at December 31 of the current year. 6. Calculate the current ratio at December 31 of the current year. \begin{tabular}{|l|r|} \hline & \\ \hline Total liabilities & \\ \hline Stockholders' Equity: & \\ \hline Common stock & 1,800 \\ \hline Additional paid-in-capital & \multicolumn{1}{|c|}{} \\ \hline Retained earnings & \multicolumn{1}{|c|}{} \\ \hline & \multicolumn{1}{|c|}{8,400} \\ \hline Total stockholders' equity & $ \\ \hline Total liabilities and stockholders' equity & 13,200 \\ \hline \end{tabular} Required 4 Required 6 Assets: Liabilities: Stockholders' Equity: Calculate the current ratio at December 31 of the current year. Note: Round your answer to 2 decimal places. Liabilities: \begin{tabular}{|l|r|} \hline & $ \\ \hline Total assets & \\ \hline Liabilities and Stockholders' Equity & \\ \hline Current Liabilities: & \\ \hline Notes Payable (current) & 4,800 \\ \hline & \\ \hline Total current liabilities & \\ \hline Notes Payable (noncurrent) & \\ \hline & \\ \hline Total liabilities & \\ \hline Stockholders' Equity: & 4,800 \\ \hline Common stock & \\ \hline Additional paid-in-capital & \\ \hline Retained earnings & 6,600 \\ \hline \end{tabular} Enter the effects of the transactions in Requirement 2 in the T-accounts. d. Declared $3,400 in cash dividends to stockholders. e. Paid dividends to stockholders. 3. Enter the effects of the transactions in Requirement 2 in the T-accounts. 4. Prepare a trial balance at December 31. 5. Prepare a classified balance sheet at December 31 of the current year. 6. Calculate the current ratio at December 31 of the current year. Complete this question by entering your answers in the tabs below. Enter the effects of the transactions in Requirement 2 in the T-accounts. Ending Balance Prev 7 of 10 Next Higgins Company began operations last year. You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. On January 1 , the start of the current year, Higgins' T-account balances were as follows: Assets: Liabilities