Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

4th edition

978-0073369709, 73369705, 78025370, 978-0077444846, 77444841, 978-0078025372

More Books

Students also viewed these Accounting questions

Question

Whats the difference between a manager and a leader?

Answered: 1 week ago

Question

What role do hormone levels play in mood?

Answered: 1 week ago

Question

What is a process and process table?

Answered: 1 week ago

Question

What is Industrial Economics and Theory of Firm?

Answered: 1 week ago

Question

What is the meaning and definition of E-Business?

Answered: 1 week ago