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 (GL)

Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following:

suring the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,600 cash. b. Lent $6,700 to a supplier who signed a two-year note. c. Purchased equipment that cost $20,000; paid $4,400 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 $77,000 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 2,200 shares of $0.50 par value common stock for $18,000 cash. f. Borrowed $15,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,300 cash. h. Built an addition to the factory for $22,000; paid $8,500 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,200. repare journal entries for the transactions. (If no entry is required for a transaction/e ccount field.) Journal entry worksheet Returned defective equipment to the manufacturer, receiving a cash refund of $3,200. Note: Enter debits before credits. Each journal entry is posted automatically to the general ledger. \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 19,000 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Notes payable (current) } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 5,500 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accrued liabilities payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 4,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Notes payable (noncurrent) } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 40,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Common stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 10,600 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Additional paid-in-capital } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 95,400 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 41,600 \\ \hline \end{tabular} Compute the current ratio for the current year. (Round your answer to 2 decimal places