Cougar Plastics Company has been operating for three years. At December 31 of last year the accounting records re $22,000 Accounts payable Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $15,000 4,000 7,000 47000 10,000 80,000 31,000 3,000 3,000 20,000 Accrued liabilities payable Notes payable (short-term) Notes payable (long-term) ,000 Common stock 50,000 90,000 5,000 Additional paid-in capital Retained earnings During the current year, the company had the following summarized activities a. Purchased short-term investments for $10,000 cash. b. Lent $5,000 to a supplier who signed a two-year note. c. Purchased equipment that cost $18,000; paid $5,000 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 $85,000 per year plus options to purchase con e. Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash. f. Borrowed $9,000 cash from a local bank, payable in three months g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000. 15 Cash Investments (short-term) Beg. Bal 22,000 Beg. Bal. 3,000 10,000 (a) 5,000 (b) End. Bal. 3,000 End. Bal. 7,000 Accounts Receivable Inventory 20,000 Beg. Bal 3,000 Beg. Bal. End. Bal. 3,000 End. Bal. 20,000 Notes Receivable (long-term) Equipment 50,000 Beg. Bal. 1,000 Beg. Bal End. Bal. 1,000 End. Bal 50,000 Factory Building Intangibles 5,000 Beg. Bal 90,000 Beg. Bal. End. Bal 90,000 End. Bal 5,000 0 F7 2 4 Accounts Payable Accrued Liabilities Payable Beg. Bal. 15,000 Beg. Ball 4,000 End. Bal. 15,000 End. Bal. 4,000 Notes Payable (short-term) 7,000 Long-Term Notes Payable 47,000 Beg. Bal. Beg. Bal End. Bal 7,000 End. Bal 47,000 Common Stock Additional Paid-in Capital 80,000 Beg. Bal. 10,000 Beg. Bal End. Bal 10,000 End. Ba 80,000 Beg. Bal. 31,000 End. Bal. 31,000 FS F7 2 4. Prepare a trial balance at December 31 of the current year COUGAR PLASTICS COMPANY Trial Balance At December 31 Account Titles Debit Credit Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles Accounts payable Accrued liabilities payable Notes payable (short-term) Notes payable (long-term Common stock Additional paid-in capital Retained earnings Totals esc 20 F1 F2 F3 OOD F4 F5 F7 COUGAR PLASTICS COMPANY Balance Sheet Assets Liabilities Stockholders' Equity 2