Tranaction/Event			Working Capital = Current Assets - Current Liabilities		Current Ratio = Current Assets / Current Liabilities		Acid-test ratio = Current assets classified as "quick" assets / current liabilities
Credit Sales amounted to $360,000 (Accounts Receivable Increased +360,000)
The Cost of Goods Sold was $234,000 (Inventory Decreased -234,000)
Collected Accounts Recievable $378,000
(Cash Increased +378,000 and Accounts Receivable Decreased -378,000)
Purchased Inventory on account $252,000
(Inventory Increased +252,000 and Accounts Payable Increased +252,000)
Issued 250 shares of common stock for $54 per share
(Cash Increased +13,500)
Wrote of $10,500 of uncollectible accounts using the allowance method
(Allowance for Bad Debt Increases +10,500 and Accounts Receivable Decreased -10,500)
Declared and paid cash dividends of $30,000
(Cash decreased -$30,000)
Sold marketable securities acquired at $39,000 for $46,500 in cash
(Cash increased +46,500 and Marketable Securities decreased -39,000)
Recorded Insurance expense for the year of $18,000; Premium paid in June of that year
(Prepaid expenses increased +18,000)
Borrowed cash on short term bank loan for $15,000
(Cash increased +15,000 and Notes Payable, Short Term increased +15,000)
Repaid principal of $60,000 and Interest of $4,500 on a long-term bank loan
(Cash decreased -64,500

Required:

The approach to this assignment would be to record the appropriate journal entry(ies) for each transaction described, taking note of the effects of the entry(ies) on current assets (CA) and current liabilities (CL). Keep in mind that certain current assets (i.e., inventory and prepaid expenses) are excluded from the numerator of the acid-test ratio. To simplify this exercise, I have noted for each transaction in italics the relevant parts of the journal entries if created that would impact the 3 items in this assignment. For each of the 3 you must specify if an increase, decrease or no effect would occur as a result of the relevant activity noted.