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 Debit Long-term notes payable Short-term note receivable Short-term notes payable Equipment Totals $ Credit 0 $ 0
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 Debit Long-term notes payable Short-term note receivable Short-term notes payable Equipment Totals $ Credit 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23bd4a69-1fc4-4ab7-a754-b46ed29207ab%2Fcc2fcbe0-5071-4d11-a24c-e9cc7931a35b%2Ftmygpb6_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 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
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