Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: During the current year, the company had the following summarized activities: a. Purchased short-term investments for $10,000 cash. b. Lent $5,000 to a supplier, who signed a two-year note. c. Purchased equipment that cost $18,000; paid $5,000 cash and signed a one-year note for the balance. d. 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. e. Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash. f. Borrowed $9,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000. Required: Page 94 1. Create T-accounts for each of the accounts taken from the accounting records shown above and enter the end-of-year balances as the beginning balances for the current year. 2. Record each of the events for the current year in T-accounts (including referencing) and determine the ending balances. 3. Explain your response to event (d). 4. Prepare a trial balance at December 31 of the current year. 5. Prepare a classified balance sheet at December 31 of the current year. 6. Compute the current ratio for the current year. What does this suggest about Jaguar Plastics