E2-16 Part 2 2. Prepare a trial balance at December 31, 2021. Answer is not complete. BAILEY DELIVERY COMPANY, INCORPORATED Trial Balance Cash Short-term note receivable Land Other current assets Short-term notes payable Common stock Common stock Totals X X Debit $ 64,300 X 4,000 12,000 21,700 $ 102,000 Credit 30,000 12,000 60,000 X $102,000
E2-16 Part 2 2. Prepare a trial balance at December 31, 2021. Answer is not complete. BAILEY DELIVERY COMPANY, INCORPORATED Trial Balance Cash Short-term note receivable Land Other current assets Short-term notes payable Common stock Common stock Totals X X Debit $ 64,300 X 4,000 12,000 21,700 $ 102,000 Credit 30,000 12,000 60,000 X $102,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:E2-16 Part 2
2. Prepare a trial balance at December 31, 2021.
Answer is not complete.
BAILEY DELIVERY COMPANY, INCORPORATED
Trial Balance
Cash
Short-term note receivable
Land
Other current assets
Short-term notes payable
Common stock
Common stock
Totals
X
X
Debit
$ 64,300 X
4,000
12,000
21,700
$ 102,000
Credit
30,000
12,000
60,000 X
$102,000
![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 12,000 shares of stock (par value of $1.00 per share) with a market
value of $9 per share.
b. Purchased land in Wisconsin for $16,000, 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 $10,000 each; paid
$6,000 cash and signed a note due in three years for the rest (ignore interest).
d. Paid $1,700 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 $4,000 to Pablo Development Corporation, which signed a six-month note.
f. Stockholder Helen Bailey paid $29,500 cash for a vacant lot (land) in Canada for her personal use.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F1943dce9-e91a-4127-af49-315e02e72523%2Fgwffu8n_processed.jpeg&w=3840&q=75)
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 12,000 shares of stock (par value of $1.00 per share) with a market
value of $9 per share.
b. Purchased land in Wisconsin for $16,000, 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 $10,000 each; paid
$6,000 cash and signed a note due in three years for the rest (ignore interest).
d. Paid $1,700 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 $4,000 to Pablo Development Corporation, which signed a six-month note.
f. Stockholder Helen Bailey paid $29,500 cash for a vacant lot (land) in Canada for her personal use.
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