33.33 points eBook Hint 'EF Print References E2-15 (Static) Analyzing the Effects of Transactions Using T-Accounts and Interpreting the Current Ratio as a Manager of the Company L02-4, 2-5 Higgins Company began operations last year. You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. On January 1, the start ofthe current year, Higgins' T-account balances were as follows: Assets: cash short-Tam Investments Pro art: and E i at: 5,000' 2,500' 3,000' Liabilities: notes Pa able current notes Pa able noncurrect 2,200 800 Coma Stock Additional Paid-in ca ital Retained Barnin s 500 I 4,000 I 3,000 Required: 1. Using the data from these Taccounts, determine the amounts for the following on January 1 ofthe current year: 2. Preparejournal entries for transactions (a) through (e) for the current year. a. Borrowed $4,000 from a local bank, signing a note due in three years. b. Sold $1,500 of the investments for $1,500 cash. c. Sold onehalf ofthe property and equipment for $1,500 in cash. d. Declared $800 in cash dividends to stockholders. e, Paid dividends to stockholders. 3. Enter the effects of the transactions in Requirement 2 in the T-accounts. 4. Prepare a trial balance at December 31. 5. Prepare a classified balance sheet at December 31 of the current year in good form. 6. Calculate the current ratio at December 31 ofthe current year