Ventilo Corporation has been operating for five years. At December $31$ of last year, the accounting records has the following information:

Cash $$33,000$

Prepaid Insurance $6,000$

Accounts Receivable $8,000$

Inventory $12,000$

Notes Receivable $2,000$

Equipment $45,000$

Building $80,000$

Patents $4,000$

Accounts Payable $20,000$

Notes Payable $($short term$)30,000$

Notes Payable $($long term$)50,000$

Common Stock $5,000$

Additional Paid$-$in Capital $45,000$

Retained Earnings $40,000$

During the current year, the company had the following occur:

a$.$ Purchased an additional insurance policy to begin coverage next year for $12$ months for $$12,000$ cash.

b$.$ Lent $$3,000$ to an employee who signed a two$-$year note.

c$.$ Purchased Equipment for $$30,000$; paid $$10,000$ in cash and signed a note for the remainder due in $18$ months.

d$.$ Hired a new office manager with a salary of $$45,000$ per year.

e$.$ Issued $1,000$ shares of common stock with a $$1$ par value for $$20,000$ cash.

f$.$ Borrowed $$5,000$ from a bank. Principal is due in $6$ months.

g$.$ Purchased another patent for $$4,500.$

h$.$ Added an extra wing in the office building for $$34,000$; paid $$18,000$ cash and signed a three$-$year note for the remaining balance.

i$.$ Returned defective equipment and the manufacturer forgave $$2,000$ on the note due.

$2.$ Create a Trial Balance at December $31$ of the Current Year.

$3.$ Create a Classified Balance Sheet.

$4.$ Compute the Current Ratio.

Ventilo Corporation

Trial Balance

At December $31,$ Current Year

Account Debit Credit

Cash

Prepaid Insurance

Accounts Receivable

Inventory

Notes Receivable

Equipment

Building

Patents

Accounts Payable

Notes Payable $($short term$)$

Notes Payable $($long term$)$

Common Stock

Additional Paid$-$in Capital

Retained Earnings

Total $0$

Ventilo Corporation

Balance Sheet

Current Assets:

Assets:

Cash

Prepaid Insurance

Accounts Receivable

Inventory

Notes Receivable

Equipment

Building

Patents

Current Liabilities

Accounts Payable

Notes Payable $($short term$)$

Notes Payable $($long term$)0$

Stockholders' Equity

Common Stock $($$$1$ par$)0$

Additional Paid$-$in Capital $0$

Retained Earnings

Total Liabilities and Stockholders' Equity $0$

Current Ratio