Answer Happy

Required information [The following information applies to the questions displayed below.] Higgins Company has been operating for one year (2014). You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At the start of 2015, Higgins's T-account balances were as follows: Assets: Cash Short-Term Investments Property and Equipment 2,900 2,800 Liabilities: Short-Term Notes Payable Long-Term Notes Payable 1,700 390 Stockholders' Equity: Common Stock Additional Paid-in Capital Retained Earnings 4,110 740 2,960 The following transactions occured in 2015: (a) Borrowed $2,800 from a local bank, signing a note due in three years. (b) Sold $900 of the investments for $900 cash. (c) Sold one-half of the property and equipment for $1,400 in cash. (d) Declared and paid $320 in cash dividends to stockholders. 4,200
2. Enter the above 2015 transactions in the T-accounts: Cash Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. 4,200 4,200 Property & Equipment 2,800 2,800 Long-term Notes Payable 390 390 Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Short-term Investments 2,900 2,900 Short-term Notes Payable 1,700 1,700 Common Stock 740 740
Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Property & Equipment 2,800 2,800 Long-term Notes Payable 390 390 Additional Paid-in Capital 2,960 2,960 Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Short-term Notes Payable 1,700 1,700 Common Stock 740 740 Retained Earnings 4,110 4,110