Higgins Company has been operating for one year (2014). You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At the start of 2015, Higgins’s T-account balances were as follows: Assets: Cash Short-Term Investments Property and Equipment 4,400 2,600 3,200 Liabilities: Short-Term Notes Payable Long-Term Notes Payable 1,500 390 Stockholders’ Equity: Common Stock Additional Paid-in Capital Retained Earnings 660 2,640 5,010 The following transactions occured in 2015: (a) Borrowed $3,100 from a local bank, signing a note due in three years. (b) Sold $1,400 of the investments for $1,400 cash. (c) Sold one-half of the property and equipment for $1,600 in cash. (d) Declared and paid $360 in cash dividends to stockholders. Required: 1. Using the data from these T-accounts, determine the amounts for the following on January 1, 2015:
Higgins Company has been operating for one year (2014). You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At the start of 2015, Higgins’s T-account balances were as follows: Assets: Cash Short-Term Investments Property and Equipment 4,400 2,600 3,200 Liabilities: Short-Term Notes Payable Long-Term Notes Payable 1,500 390 Stockholders’ Equity: Common Stock Additional Paid-in Capital Retained Earnings 660 2,640 5,010 The following transactions occured in 2015: (a) Borrowed $3,100 from a local bank, signing a note due in three years. (b) Sold $1,400 of the investments for $1,400 cash. (c) Sold one-half of the property and equipment for $1,600 in cash. (d) Declared and paid $360 in cash dividends to stockholders. Required: 1. Using the data from these T-accounts, determine the amounts for the following on January 1, 2015:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Higgins Company has been operating for one year (2014). You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At the start of 2015, Higgins’s T-account balances were as follows: |
Assets: |
Cash | Short-Term Investments | Property and Equipment |
4,400 |
|
2,600 |
|
3,200 |
|
Liabilities: |
Short-Term Notes Payable | Long-Term Notes Payable |
|
1,500 |
|
390 |
|
|
Common Stock | Additional Paid-in Capital |
|
660 |
|
2,640 |
|
5,010 |
The following transactions occured in 2015: |
(a) | Borrowed $3,100 from a local bank, signing a note due in three years. |
(b) | Sold $1,400 of the investments for $1,400 cash. |
(c) | Sold one-half of the property and equipment for $1,600 in cash. |
(d) | Declared and paid $360 in cash dividends to stockholders. |
Required: |
1. |
Using the data from these T-accounts, determine the amounts for the following on January 1, 2015: |
|
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