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Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash$22,000Accounts payable$15,000Investments (short-term)3,000Accrued liabilities
Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following:
Cash$22,000Accounts payable$15,000Investments (short-term)3,000Accrued liabilities payable4,000Accounts receivable3,000Notes payable (current)7,000Inventory20,000Notes payable (noncurrent)87,000Notes receivable (long-term)1,000Long-term lease liabilities63,000Equipment50,000Common stock10,000Factory building90,000Additional paid-in capital117,000Operating lease right-of-use assets140,000Retained earnings31,000Intangible assets5,000During the current year, the company had the following summarized activities:
- Purchased short-term investments for $10,000 cash.
- Lent $5,000 to a supplier, who signed a two-year note.
- Leased equipment that cost $18,000; paid $5,000 cash and signed a five-year right-of-use lease for the balance.
- Hired a new president at the end of the year. The contract was for $85,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year.
- Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash.
- Borrowed $9,000 cash from a local bank, payable in three months.
- Purchased a patent (an intangible asset) for $3,000 cash.
- Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance.
- Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.
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