Required information [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 14,000 shares of stock (par value of $1.00 per share) with a market value of $11 per share. b. Purchased land in Wisconsin for $19,000, 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 $3,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,200 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 $4,750 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $29,000 cash for a vacant lot (land) in Canada for her personal use. . At the end of the next two years, Bailey Delivery Company reported the following amounts on its balance sheets: Current Assets Long-Term Assets Total Assets Short-Term Notes Payable Long-Term Notes Payable. Total Liabilities Stockholders' Equity December 31, 2022 $55,000 42,000 97,000 20,000 13,000 Year Current Ratio 2021 2022 2023 33,000 64,000 December 31, 2023 $50,000 83,000 133,000 37,000 20,000 57,000 76,000 Compute the company's current ratio for 2021, 2022, and 2023. Note: Round your answers to 2 decimal places.
Required information [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 14,000 shares of stock (par value of $1.00 per share) with a market value of $11 per share. b. Purchased land in Wisconsin for $19,000, 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 $3,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,200 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 $4,750 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $29,000 cash for a vacant lot (land) in Canada for her personal use. . At the end of the next two years, Bailey Delivery Company reported the following amounts on its balance sheets: Current Assets Long-Term Assets Total Assets Short-Term Notes Payable Long-Term Notes Payable. Total Liabilities Stockholders' Equity December 31, 2022 $55,000 42,000 97,000 20,000 13,000 Year Current Ratio 2021 2022 2023 33,000 64,000 December 31, 2023 $50,000 83,000 133,000 37,000 20,000 57,000 76,000 Compute the company's current ratio for 2021, 2022, and 2023. Note: Round your answers to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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 14,000 shares of stock (par value of $1.00 per share) with a market
value of $11 per share.
b. Purchased land in Wisconsin for $19,000, 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
$3,000 cash and signed a note due in three years for the rest (ignore interest).
d. Paid $1,200 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 $4,750 to Pablo Development Corporation, which signed a six-month note.
f. Stockholder Helen Bailey paid $29,000 cash for a vacant lot (land) in Canada for her personal use.
. At the end of the next two years, Bailey Delivery Company reported the following amounts on its balance sheets:
December December
31, 2022 31, 2023
$55,000
$50,000
42,000
83,000
133,000
Current Assets
Long-Term Assets
Total Assets
Short-Term Notes Payable
Long-Term Notes Payable
Total Liabilities
Stockholders' Equity
Year
2021
2022
2023
97,000
20,000
13,000
33,000
64,000
Current Ratio
37,000
20,000
Compute the company's current ratio for 2021, 2022, and 2023.
Note: Round your answers to 2 decimal places.
57,000
76,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0f50f43-7d5a-44d3-a944-80a2d96600fe%2Ffebe7be6-a54c-409c-bf66-894ee3ed1691%2Fbm8y0np_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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 14,000 shares of stock (par value of $1.00 per share) with a market
value of $11 per share.
b. Purchased land in Wisconsin for $19,000, 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
$3,000 cash and signed a note due in three years for the rest (ignore interest).
d. Paid $1,200 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 $4,750 to Pablo Development Corporation, which signed a six-month note.
f. Stockholder Helen Bailey paid $29,000 cash for a vacant lot (land) in Canada for her personal use.
. At the end of the next two years, Bailey Delivery Company reported the following amounts on its balance sheets:
December December
31, 2022 31, 2023
$55,000
$50,000
42,000
83,000
133,000
Current Assets
Long-Term Assets
Total Assets
Short-Term Notes Payable
Long-Term Notes Payable
Total Liabilities
Stockholders' Equity
Year
2021
2022
2023
97,000
20,000
13,000
33,000
64,000
Current Ratio
37,000
20,000
Compute the company's current ratio for 2021, 2022, and 2023.
Note: Round your answers to 2 decimal places.
57,000
76,000
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