Question

Required information [The following information applies to the questions displayed below.) Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year: a. Received cash from investors in exchange for 10,000 shares of stock (par value of $1.00 per share) with a market value of $4 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 $4,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,000 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 $27,600 cash for a vacant lot (land) in Canada for her personal use.

fill in the rest of the missing information from the balance sheet

Answer 1

BAILEY DELIVERY COMPANY, INC.
Balance Sheet
Assets		Liabilities
Current Assets:		Current Liabilities:
Cash	7400	Short term notes payable	16000
Short Term Note receivable	4000
		Total Current Liabilities	16000
		Long Term Notes Payable	16000
Total Current Assets	11400
		Total Liabilities	32000
Non-Current Assets:		Stockholders' Equity
Land	12000	Common Stock	10000
Equipment	21000	Additional Paid-in Capital	30000
		Other Equity (Drawings)	-27600
Total Non-current assets	33000	Total Stockholders' Equity	12400
Total Assets	44400	Total Liabilities and stockholders' equity	44400

Calculations:

BAILEY DELIVERY COMPANY, INC.
Balance Sheet
Assets		Liabilities
Current Assets:		Current Liabilities:
Cash	=40000-4000-1000-27600	Short term notes payable	16000
Short Term Note receivable	4000
		Total Current Liabilities	=SUM(D6:D8)
		Long Term Notes Payable	=20000-4000
Total Current Assets	=SUM(B6:B10)
		Total Liabilities	=SUM(D9:D11)
Non-Current Assets:		Stockholders' Equity
Land	=16000-4000	Common Stock	10000
Equipment	=20000+1000	Additional Paid-in Capital	30000
		Other Equity (Drawings)	-27600
Total Non-current assets	=SUM(B14:B16)	Total Stockholders' Equity	=SUM(D14:D16)
Total Assets	=B11+B17	Total Liabilities and stockholders' equity	=D12+D17