Using the data from the T-accounts given, complete the accounting equation on January 1 of the current year.

Prepare journal entries for transactions (a) through (e) for the current year.

Borrowed $10,500 from a local bank, signing a note due in three years.

Sold $8,000 of the investments for $8,000 cash.

Sold one-half of the property and equipment for $2,800 in cash.

Declared $3,400 in cash dividends to stockholders.

Paid dividends to stockholders.

Enter the effects of the transactions in Requirement 2 in the T-accounts.

Prepare a trial balance at December 31.

Prepare a classified balance sheet at December 31 of the current year.

Calculate the current ratio at December 31 of the current year.