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NYHEUVUVI P2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 (The following

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NYHEUVUVI P2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 (The following Information applies to the questions displayed below.) Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $ 27,000 Accounts payable 3,000 Accrued liabilities payable 4,200 Notes payable (current) 28,000 Notes payable (noncurrent) 2,100 Common stock 59,000 Additional paid in capital 104,000 Retained earnings 3,700 $14,000 3,700 7,100 44,000 10,500 94,500 57,200 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,300 cash b. Lent 56,900 to a supplier who signed a two-year note. c. Purchased equipment that cost $19.000, paid $5,100 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 $75,000 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 1,400 shares of $0.50 par value common stock for $12,000 cosh, f. Borrowed $15,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,400 cash. h. Built an addition to the factory for $26,000; paid $7,400 in cash and signed a three-year note for the balance. 1. Returned defective equipment to the manufacturer, receiving a cash refund of $2.400. b. Lent $6,900 to a supplier who signed a two-year note. c. Purchased equipment that cost $19,000; paid $5,100 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 $75,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on Januar of next year e. Issued an additional 1,400 shares of $0.50 par value common stock for $12,000 cash. f. Borrowed $15,000 cash from a local bank, payable in three months. 9. Purchased a patent (an intangible asset) for $1,400 cash. h Built an addition to the factory for $26,000; paid $7,400 in cash and signed a three-year note for the balance. 1. Returned defective equipment to the manufacturer, receiving a cash refund of $2,400. P2-3 Part 6 6. Compute the current ratio for the current year. (Round your answer to 2 decimal places.) Current ratio

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