Homework Help is Here – Start Your Trial Now!
Business
Accounting
E2-16 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing a Balance S Evaluating the Current Ratio over Time as a Bank Loan Officer LO2-4,2-5 [The following information applies to the questions displayed below.] Bailey Delivery Company, Incorporated, was organized in 2021 in Wisconsin. The following transactions oc the year. 10 S NAVALIKU O B a. Received cash from investors in exchange for 11,000 shares of stock (par value of $1.00 per share) wit a Pente

E2-16 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing a Balance S Evaluating the Current Ratio over Time as a Bank Loan Officer LO2-4,2-5 [The following information applies to the questions displayed below.] Bailey Delivery Company, Incorporated, was organized in 2021 in Wisconsin. The following transactions oc the year. 10 S NAVALIKU O B a. Received cash from investors in exchange for 11,000 shares of stock (par value of $1.00 per share) wit a Pente

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

7

Required Information E2-16 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing a Balance Sheet, and Evaluating the Current Ratio over Time as a Bank Loan Officer LO2-4, 2-5 [The following information applies to the questions displayed below.] Bailey Delivery Company, Incorporated, was organized in 2021 in Wisconsin. The following transactions occurred during the year. a. Received cash from investors in exchange for 11,000 shares of stock (par value of $1.00 per share) with a market value of $8 per share. b. Purchased land in Wisconsin for $17,000, 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 $2,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,900 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 $4,250 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $28,200 cash for a vacant lot (land) in Canada for her personal use. E2-16 Part 2 2. Prepare a trial balance at December 31, 2021. Cash Land BAILEY DELIVERY COMPANY, INCORPORATED Trial Balance At December 31, 2021 Long-term notes payable Short-term note receivable Short-term notes payable Equipment Totals Debit $ A Credit 0 $ 0
Transcribed Image Text:Required Information E2-16 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing a Balance Sheet, and Evaluating the Current Ratio over Time as a Bank Loan Officer LO2-4, 2-5 [The following information applies to the questions displayed below.] Bailey Delivery Company, Incorporated, was organized in 2021 in Wisconsin. The following transactions occurred during the year. a. Received cash from investors in exchange for 11,000 shares of stock (par value of $1.00 per share) with a market value of $8 per share. b. Purchased land in Wisconsin for $17,000, 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 $2,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,900 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 $4,250 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $28,200 cash for a vacant lot (land) in Canada for her personal use. E2-16 Part 2 2. Prepare a trial balance at December 31, 2021. Cash Land BAILEY DELIVERY COMPANY, INCORPORATED Trial Balance At December 31, 2021 Long-term notes payable Short-term note receivable Short-term notes payable Equipment Totals Debit $ A Credit 0 $ 0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS