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
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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:
Required information 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 $29,000 Accounts payable 2,200 Acerued liabilities payable 4,000 Notes payable (current) 32,000 Notes payable (noncurrent) 1,200 Common stock 56,000 Additional paid-in capital 97,000 Retained earnings 4,800 $21,000 2,200 6,600 49,000 9,500 85,500 52,400 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7100 cash. b. Lent $6,800 to a supplier who signed a two-year note. c. Purchased equipment that cost $21,000; paid $5,700 cash and signed a one-year note for the balance. 2 3 APs s Fw Ai IdP FIBI A PQWXC 19 Exercises a Saved Help Save & Exit Check Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $29,000 Accounts payable 2,200 Accrued liabilities payable 4,000 Notes payable (current) 32,000 Notes payable (noncurrent) 1,200 Common stock 56,000 Additional paid-in capital 97,000 Retained earnings 4,800 $21,000 2,200 6,600 49,000 9,500 85,500 52,400 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7100 cash. b. Lent $6,800 to a supplier who signed a two-year note. c. Purchased equipment that cost $21,000; paid $5,700 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 1,900 shares of $0.50 par value common stock for $14,000 cash. f. Borrowed $10,000 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 $21,000; paid $7,100 in cash and signed a three-year note for the balance. 1. Returned defective equipment to the manufacturer, receiving a cash refund of $1,500. Required information Cash Beg. Bal. Investments (short-term) 2,200 29,000 Beg. Bal. 7,100 (a) 6,800 (b) End. Bal. 2,200 End. Bal. 15.100 Accounts Receivable 4,000 Inventory 32,000 Beg. Bal. Beg. Bal. End. Bal. 4,000 End. Bal. 32,000 Notes Receivable (long-term) 1,200 Equipment 56,000 Beg. Bal. Beg. Bal. Required information JAGUAR PLASTICS COMPANY Trial Balance At December 31 Debit Credit Account Titles Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles Accounts payable Accrued liabilities payable Notes payable (current) Notes payable (noncurrent) Common stock Additional paid-in capital Retained earnings Totals 0 5 of 5 RrAe Pr
