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 $23,000 Accounts payable 2,900 Accrued liabilities payable 3,900 Notes payable (current) 28,000 Notes payable (noncurrent) 2,400 Common stock 58,000 Additional paid-in capital 95,000 Retained earnings 3,600 $20,000 3,100 6,800 44,000 10,300 92,700 39,900 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,100 cash. b. Lent $5,400 to a supplier who signed a two-year note. c. Purchased equipment that cost $19,000; 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 $88,000 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 1,300 shares of $0.50 par value common stock for $10,000 cash. f. Borrowed $14,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,600 cash. h. Built an addition to the factory for $28,000; paid $8,900 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,400