a. Received cash from investors in exchange for 16,000 shares of stock (par value of $1.00 per share) with a market value of $10 per share. b. Purchased land in Wisconsin for $23,000, 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 $13,000 each; paid $4,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,800 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 $5,750 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $28,700 cash for a vacant lot (land) in Canada for her personal use. 3. Prepare a classified balance sheet for Bailey Delivery Company at December 31, 2021. BAILEY DELIVERY COMPANY, INCORPORATED Balance Sheet Current assets: Total current assets Non-current assets: Total non-current assets Total assets Assets 0 Current liabilities: Liabilities Total current liabilities Total liabilities Stockholders' Equity 0 Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 0 0
a. Received cash from investors in exchange for 16,000 shares of stock (par value of $1.00 per share) with a market value of $10 per share. b. Purchased land in Wisconsin for $23,000, 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 $13,000 each; paid $4,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,800 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 $5,750 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $28,700 cash for a vacant lot (land) in Canada for her personal use. 3. Prepare a classified balance sheet for Bailey Delivery Company at December 31, 2021. BAILEY DELIVERY COMPANY, INCORPORATED Balance Sheet Current assets: Total current assets Non-current assets: Total non-current assets Total assets Assets 0 Current liabilities: Liabilities Total current liabilities Total liabilities Stockholders' Equity 0 Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:a. Received cash from investors in exchange for 16,000 shares of stock (par value of $1.00 per share) with a market
value of $10 per share.
b. Purchased land in Wisconsin for $23,000, 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 $13,000 each; paid
$4,000 cash and signed a note due in three years for the rest (ignore interest).
d. Paid $1,800 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 $5,750 to Pablo Development Corporation, which signed a six-month note.
f. Stockholder Helen Bailey paid $28,700 cash for a vacant lot (land) in Canada for her personal use.
3. Prepare a classified balance sheet for Bailey Delivery Company at December 31, 2021.
BAILEY DELIVERY COMPANY, INCORPORATED
Balance Sheet
Current assets:
Total current assets
Non-current assets:
Total non-current assets
Total assets
Assets
0
Current liabilities:
Liabilities
Total current liabilities
Total liabilities
Stockholders' Equity
0 Total stockholders' equity
0 Total liabilities and stockholders' equity
$
0
0
0
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Step 1: Introduce to balance sheet
VIEWStep 2: Working for ending balance of cash and short term notes receivable
VIEWStep 3: Working for ending balance of land and equipment
VIEWStep 4: Working for ending balance of short term and long term notes payable
VIEWStep 5: Working for ending balance of common stock and additional paid in capital
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