Injection Plastics Company has been operating for three years. At December 31, 2017, the accounting records reflected the following: $ Cash Investments (short-term) Accounts receivable Inventories Notes receivable (long-term) Equipment Factory building $ 21,000 Intangibles 2.000 Accounts payable 3,000 Accrued liabilities 24,000 Short-term borrowings 1,000 Notes payable (long-term) 48.000 Contributed capital 90,000 Retained earnings 3,000 15,000 2,000 7,000 48,000 90.000 30,000 During the year 2018, the following summarized transactions were completed: a. Purchased equipment that cost $18,000; paid $6,000 cash and signed a one-year note for the balance. b. Issued 2,000 additional shares for $12,000 cash. c. Lent $7,000 to a manager, who signed a two-year note. d. Purchased short-term investments for $9,000 in cash. e. Paid $5,000 on the note in transaction (a). f. Borrowed $12,000 cash on December 31, 2018, from the bank and signed a note, payable June 30, 2019. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $25,000; paid $9,000 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 $85,000 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 $1,000. 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 2017 as beginning balances for 2018. Cash Investments (Short-term) Beg. bal. Beg. bal. End. bal. Cash Investments (Short-term) Beg. bal. Beg. bal. End. bal. 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. 3. Not available in connect. 4. Prepare a trial balance at December 31, 2018. INJECTION PLASTICS COMPANY Trial Balance At December 31, 2018 Debit Credit Cash Investments (short-term) Accounts receivable Inventory 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, 2018. INJECTION PLASTICS COMPANY Statement of Financial Position As at December 31, 2018 Assets Liabilities Current assets: Current liabilities: Total Current liabilities Non-current Liabilities: of Total current assets Noncurrent assets: Total liabilities 0 Shareholders' Equity Total shareholders' equity 0 Total liabilities and shareholders' equity 0 0 Total assets $ $ 6. Compute the current ratio at December 31, 2018. (Round the final answer to 2 decimal places.) Current ratio
