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Injection Plastics Company has been operating for three years. At December 31, 2020, the accounting records reflected the following: Cash Investments (short-term) $25,500 2,900
Injection Plastics Company has been operating for three years. At December 31, 2020, the accounting records reflected the following: Cash Investments (short-term) $25,500 2,900 Intangibles $ 3,900 Accounts payable 15,900 Accounts receivable 3,900 Accrued liabilities 2,900 Inventories 28,500 Short-term borrowings 7,900 Notes receivable (long-term) 1,900 Notes payable (long-term) 52,500 Equipment 52,500 Contributed capital 99,000 Factory building 94,500 Retained earnings 35,400 During the year 2021, the following summarized transactions were completed: a. Purchased equipment that cost $19,800; paid $6,900 cash and signed a one-year note for the balance. b. Issued 2,900 additional shares for $17,400 cash. c. Lent $7,900 to a manager, who signed a two-year note. d. Purchased short-term investments for $9,900 in cash. e. Paid $5,900 on the note in transaction (a). f. Borrowed $12,900 cash on December 31, 2021, from the bank and signed a note, payable June 30, 2022. g. Purchased a patent (an intangible asset) for $3,900 cash. h. Built an addition to the factory for $27,700; paid $9,900 in cash and signed a three-year note for the balance. i. Hired a new president at the end of the year. The contract was for $89,500 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 $1,900.
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