Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $20,000 Accounts payable 3,200 Accrued liabilities payable 3,600 Notes payable (current) 26,000 Notes payable (noncurrent) 2,600 Common stock 50,000 Additional paid-in capital 97,000 Retained earnings 4,400 $21,000 2,600 7,300 41,000 9,500 85,500 39,900 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,400 cash. b. Lent $5,700 to a supplier who signed a two-year note. c. Purchased equipment that cost $24,000; paid $4,800 cash and signed a one-year note for the balance. d. Hired a new president at the end of the year. The contract was for $82,000 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. e. Issued an additional 2,000 shares of $0.50 par value common stock for $16,000 cash. f. Borrowed $11,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,400 cash. h. Built an addition to the factory for $28,000; paid $9,000 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,100. P2-3 Part 1 and 2 Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet. (Two items have been given in the cash T-account as examples). Cash 20,000 Investments (short-term) 3,200 Beg. Bal. Beg. Bal. 8,400 (a) 5,700 (b) End. Bal. 3,200 End. Bal. 5,900 Accounts Receivable 3,600 Inventory 26,000 Beg. Bal. Beg. Bal. End. Bal. 3,600 End. Bal. 26,000 Notes Receivable (long-term) 2,600 Equipment 50,000 Beg. Bal. Beg. Bal. End. Bal. 2,600 End. Bal. 50,000 Factory Building 97,000 Intangibles 4,400 Beg. Bal. Beg. Bal. End. Bal. 97,000 End. Bal. 4,400 Accounts Payable 21,000 Accrued Liabilities Payable 2,600 Beg. Bal. Beg. Bal. End. Bal. 21,000 End. Bal. 2,600 Notes payable (current) 7,300 Notes payable (noncurrent) 41,000 Beg. Bal. Beg. Bal. End. Bal. 7,300 End. Bal. 41,000 Common Stock Additional Paid-in Capital Notes payable (current) 7,300 Notes payable (noncurrent) 41,000 Beg. Bal. Beg. Bal. End. Bal. 7,300 End. Bal. 41,000 Common Stock 9,500 Additional Paid-in Capital 85,500 Beg. Bal. Beg. Bal. End. Bal. 9,500 End. Bal. 85,500 Retained Earnings 39,900 Beg. Bal. End. Bal. 0 39,900 4. Prepare a trial balance at December 31 of the current year. Credit JAGUAR PLASTICS COMPANY Trial Balance At December 31 Account Titles Debit Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles Accounts payable Accrued liabilities payable Notes payable (current) Notes payable (noncurrent) Common stock Additional paid-in capital Retained earnings Totals 0 0 5. Prepare a classified balance sheet at December 31 of the current year. JAGUAR PLASTICS COMPANY Balance Sheet At December 31 Liabilities Current liabilities: Notes Payable (current) Assets Current assets: Accounts receivable $ 11,000 Cash 11,000 Total current liabilities 0 Notes payable (noncurrent) Total current assets Non-current assets: 11,000 Total liabilities Stockholders' Equity Common stock Additional paid-in capital Total non-current assets 0 0 Total assets $ 0 11,000