Injection Plastics Company has been operating for three years. At December 31, 2020, the accounting records reflected the following: Cash Investments (short-term) Accounts receivable Inventories Notes receivable (long-term) Equipment Factory building $21,500 2,100 3,100 24,500 1,100 48,500 90,500 Intangibles Accounts payable Accrued liabilities Short-term borrowings Notes payable (long-term) Contributed capital Retained earnings $ 3, 100 15,100 2,100 7,100 48,500 91,000 30, 600 During the year 2021, the following summarized transactions were completed: a. Purchased equipment that cost $18,200; paid $6,100 cash and signed a one-year note for the balance. b. Issued 2,100 additional shares for $12,600 cash. c. Lent $7,100 to a manager, who signed a two-year note. d. Purchased short-term investments for $9,100 in cash. e. Paid $5,100 on the note in transaction (a). f. Borrowed $12,100 cash on December 31, 2021, from the bank and signed a note, payable June 30, 2022. g. Purchased a patent (an intangible asset) for $3,100 cash. h. Built an addition to the factory for $25,300; paid $9,100 in cash and signed a three-year note for the balance. 1. Hired a new president at the end of the year. The contract was for $85,500 per year plus options to purchase company shares at a set price based on company performance. j. Returned defective equipment to the manufacturer, receiving a cash refund of $1,100. Required: 1 & 2. Post the T-accounts for each of the accounts on the statement of financial position and enter the balances at the end of 2020 as beginning balances for 2021. Cash Investments (Short-term) Beg. bal. Beg. bal. a. fb. c. d. fe End. bal. f. End. bal. Accounts Receivable Inventories Beg. bal. Beg. bal. End. bal. End. bal. Notes Receivable (Long-term) Equipment Beg. bal. Beg. bal. End. bal. End. bal. Factory Building Intangibles Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Accrued Liabilities Beg. bal. Beg. bal. End. bal. End. bal. Short-Term Borrowings Notes Payable (Long-term) Beg. bal. Beg. bal. End. bal. End. bal. Contributed Capital Retained Earnings Beg. bal. Beg. bal. End. bal. End. bal. 4. Prepare a trial balance at December 31, 2021. INJECTION PLASTICS COMPANY Trial Balance At December 31, 2021 Debit Credit Cash Investments (short-term) Accounts receivable Inventories Notes receivable (long-term) Equipment Factory building Intangibles Accounts payable Accrued liabilities Short-term borrowings Notes payable (long-term) Contributed capital Retained earnings Totals $ 0 $ 0 5. Prepare a classified statement of financial position at December 31, 2021. INJECTION PLASTICS COMPANY Statement of Financial Position As at December 31, 2021 Assets Liabilities Current assets: Current liabilities: Total Current liabilities 0 Non-current Liabilities: 0 Total current assets Non-current assets: Total liabilities 0 Shareholders' Equity Total shareholders' equity 0 Total liabilities and shareholders' equity Total assets $ $ 0
