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Injection Plastics Company has been operating for three years. At December 31, 2020, the accounting records reflected the following: Cash $ 24,500 Intangibles $ 3,700

Injection Plastics Company has been operating for three years. At December 31, 2020, the accounting records reflected the following:

Cash $ 24,500 Intangibles $ 3,700
Investments (short-term) 2,700 Accounts payable 15,700
Accounts receivable 3,700 Accrued liabilities 2,700
Inventories 27,500 Short-term borrowings 7,700
Notes receivable (long-term) 1,700 Notes payable (long-term) 51,500
Equipment 51,500 Contributed capital 97,000
Factory building 93,500 Retained earnings 34,200

During the year 2021, the following summarized transactions were completed:

  1. Purchased equipment that cost $19,400; paid $6,700 cash and signed a one-year note for the balance.
  2. Issued 2,700 additional shares for $16,200 cash.
  3. Lent $7,700 to a manager, who signed a two-year note.
  4. Purchased short-term investments for $9,700 in cash.
  5. Paid $5,700 on the note in transaction (a).
  6. Borrowed $12,700 cash on December 31, 2021, from the bank and signed a note, payable June 30, 2022.
  7. Purchased a patent (an intangible asset) for $3,700 cash.
  8. Built an addition to the factory for $27,100; paid $9,700 in cash and signed a three-year note for the balance.
  9. Hired a new president at the end of the year. The contract was for $88,500 per year plus options to purchase company shares at a set price based on company performance.
  10. Returned defective equipment to the manufacturer, receiving a cash refund of $1,700
  11. .image 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 Imants (hort-term) Accounts receivable Investorius Notes receivable [long-term) Equipment Factory building $24,300 Intangibles 2,700 Accounts payable 3,706 Accred liabilities 27,900 Short-term borrowinga 1,700 Notas payable (long-tera) 51,50 Contributed capital 93,900 Retained earnings $ 3.700 13,700 2,700 7,700 31,500 37,000 34,200 During the year 2021, the following summarized transactions were completed a. Purchased equipment that cost $19,400 paid $6,700 cash and signed a one-year nate for the balance. b.issued 2,700 additional shares for $16,200 cash cLent $7,700 to a manager, who signed a two-year note. d. Purchased short-term investments for $9,700 in cash. e Paid $5,700 on the note in transaction (al. Borrowed $12,700 cash on December 31, 2021, from the bank and signed a note payable June 30, 2022. g. Purchased a patent (an Intangible asset) for $3,700 cash h. Built an addition to the factory for $2700 paid $9.700 in cash and signed a three-year nate for the balance Hired a new president at the end of the year. The contract was for $28,500 per year plus options to purchase company shares at a set price based on company performance. Returned defective equipment to the manufacturer, receiving a cash refund of $1,700. 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. End bal. End. bal. Accounts Receivable Inventories Beg bal Beg bal End. bal Endbal Notes Receivable (Long-term Equipment Beg bal. Beg bal End bal. Endbal Factory Building Intangibles Beg bal Beg bal End bal End bal Accounts Payable Acered 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. Credit INJECTION PLASTICS COMPANY Trial Balance Al December 31, 2021 Debit Cash Investments (short-term Accounts receivable Inventories Notes reolvable long-term Equipment Factory building Intangibles Accounts payable Acered liabilities Short-Somborrowings Notes payable long term Contributed capital Retained eaming Total 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 abilities Total Currentibus Noncurrent Liabilities: 0 Total current Non-current Total liabilities Shareholders' Equity Total shareholdersguly Total abies and shareholders' equily Total assets 6. Compute the current ratio at December 31, 2021. (Round the final answer to 2 decimal places.) Current ratio

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