2 3 (Algo) Recording Transactions in T Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2 2, 2 4, 2 5 (GL) Jaguar Plastics Company has been operating for three years At December 31 of last year, the accounting records reflected the following Cash $ 20,000 Accounts payable $ 22,000 Investments (short term) 3,100 Accrued liabilities payable 3,100 Accounts receivable 3,200 Notes payable (current) 6,700 Inventory 24,000 Notes payable (noncurrent) 46,000 Notes receivable (long term) 1,300 Common stock 10,200 Equipment 60,000 Additional paid in capital 91,800 Factory building 103,000 Retained earnings 38,900 Intangibles 4,100 During the current year, the company had the following summarized activities Purchased short term investments for $7,100 cash Lent $5,400 to a supplier who signed a two year note Purchased equipment that cost $27,000 paid $4,500 cash and signed a one year note for the balance Hired a new president at the end of the year The contract was for $92,000 per year plus options to purchase company stock at a set price based on company performance The new president begins her position on January 1 of next year Issued an additional 2,000 shares of $0 50 par value common stock for $16,000 cash Borrowed $19,000 cash from a local bank, payable in three months Purchased a patent (an intangible asset) for $1,600 cash Built an addition to the factory for $22,000 paid $8,500 in cash and signed a three year note for the balance Returned defective equipment to the manufacturer, receiving a cash refund of $2,000 General Journal tab Prepare journal entries to record the transactions listed in (a) through (i) Review the accounts as shown in the General Ledger and Trial Balance tabs General Ledger tab Each journal entry is posted automatically to the General Ledger Trial Balance tab Your choice will determine the reported values on the financial statement tabs Balance Sheet tab Use the drop downs to select the accounts that should be properly included on the Balance Sheet Analysis tab Compute the current ratio for the current year

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2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 (GL) Jaguar Plastics

2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 (GL)

Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following:


Cash	$	20,000	Accounts payable	$	22,000
Investments (short-term)		3,100	Accrued liabilities payable		3,100
Accounts receivable		3,200	Notes payable (current)		6,700
Inventory		24,000	Notes payable (noncurrent)		46,000
Notes receivable (long-term)		1,300	Common stock		10,200
Equipment		60,000	Additional paid-in capital		91,800
Factory building		103,000	Retained earnings		38,900
Intangibles		4,100

During the current year, the company had the following summarized activities:

Purchased short-term investments for $7,100 cash.
Lent $5,400 to a supplier who signed a two-year note.
Purchased equipment that cost $27,000; paid $4,500 cash and signed a one-year note for the balance.
Hired a new president at the end of the year. The contract was for $92,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year.
Issued an additional 2,000 shares of $0.50 par value common stock for $16,000 cash.
Borrowed $19,000 cash from a local bank, payable in three months.
Purchased a patent (an intangible asset) for $1,600 cash.
Built an addition to the factory for $22,000; paid $8,500 in cash and signed a three-year note for the balance.
Returned defective equipment to the manufacturer, receiving a cash refund of $2,000.

General Journal tab - Prepare journal entries to record the transactions listed in (a) through (i). Review the accounts as shown in the General Ledger and Trial Balance tabs.

General Ledger tab - Each journal entry is posted automatically to the General Ledger.

Trial Balance tab - Your choice will determine the reported values on the financial statement tabs.

Balance Sheet tab - Use the drop-downs to select the accounts that should be properly included on the Balance Sheet.

Analysis tab - Compute the current ratio for the current year.