Cougar Plastics Company has been operating for three years. At December 31, 2014, the accounting records reflected the following:

Cash	$	22,000		Accounts payable	$	20,000
Investments (short-term)		2,600		Accrued liabilities payable		2,800
Accounts receivable		3,700		Notes payable (short-term)		6,800
Inventory		28,000		Notes payable (long-term)		42,000
Notes receivable (long-term)		2,700		Common stock		10,500
Equipment		47,000		Additional paid-in capital		94,500
Factory building		95,000		Retained earnings		28,500
Intangibles		4,100

During the year 2015, the company had the following summarized activities:

a.	Purchased short-term investments for $8,800 cash.
b.	Lent $5,300 to a supplier who signed a two-year note.
c.	Purchased equipment that cost $20,000; paid $5,200 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 $79,000 per year plus options to purchase company stock at a set price based on company performance.
e.	Issued an additional 2,200 shares of $0.50 par value common stock for $18,000 cash.
f.	Borrowed $17,000 cash from a local bank, payable in three months.
g.	Purchased a patent (an intangible asset) for $2,200 cash.
h.	Built an addition to the factory for $28,000; paid $7,700 in cash and signed a three-year note for the balance.
i.	Returned defective equipment to the manufacturer, receiving a cash refund of $1,500.

rev: 09_05_2014_QC_53105, 09_06_2014_QC_53105, 10_06_2014_QC_55409

9.

value: 1.00 points

Required information

Required:

1. & 2.

Post the T-accounts for each of the accounts on the balance sheet and enter the balances at the end of 2014 as beginning balances for 2015. (Two items have been given in the cash T-account as examples).

References

eBook & Resources

Check my work

10.

value: 1.00 points

Required information

4.	Prepare a trial balance at December 31, 2015.

References

eBook & Resources

Check my work

11.

value: 1.00 points

Required information

5.	Prepare a classified balance sheet at December 31, 2015.

rev: 09_05_2014_QC_53105, 09_06_2014_QC_53105

References

eBook & Resources

Check my work

12.

value: 1.00 points

Required information

6.	Compute the current ratio for 2015. (Round your answer to 2 decimal places.)

References

eBook & Resources