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Problem a b C d e Borrowed $18,266 from banks due in two years Purchased additional investments for $21,000 cash; one-fifth were long term and the rest were short term c. Purchased property, plant, and equipment; paid $9,571 in cash and signed a short term note for $1,410 d. Issued one additional share of common stock for $1,469 in cash; total par value was $1 and the rest was in excess of par value e. Sold short-term investments costing $18,810 for $18,810 cash f. Declared $11,126 in dividends to be paid at the beginning of the next fiscal year Instructions 1 Prepare a journal entry for each transaction 2 Create T accounts for each balance sheet account and include beginning balances from the balance sheet. 3 Prepare a Trial Balance 4 Prepare a balance sheet from the T accounts 5 Compute the current ratio Problem a b C d e Borrowed $18,266 from banks due in two years Purchased additional investments for $21,000 cash; one-fifth were long term and the rest were short term c. Purchased property, plant, and equipment; paid $9,571 in cash and signed a short term note for $1,410 d. Issued one additional share of common stock for $1,469 in cash; total par value was $1 and the rest was in excess of par value e. Sold short-term investments costing $18,810 for $18,810 cash f. Declared $11,126 in dividends to be paid at the beginning of the next fiscal year Instructions 1 Prepare a journal entry for each transaction 2 Create T accounts for each balance sheet account and include beginning balances from the balance sheet. 3 Prepare a Trial Balance 4 Prepare a balance sheet from the T accounts 5 Compute the current ratio