P2-3 Recording Transactions in T-Accounts, Preparing a Statement of Financial Position from a Trial Balance, and Evaluating the Current Ratio LO2-4, 2-6 Injection Plastics Company has been operating for three years. At December 31, 2020, the accounting records reflected the following: Cash Investments (short-term) Intangibles $27,500 3,300 $ 4,300 Accounts payable. 16,300 Accounts receivable 4,300 Accrued liabilities 3,300 Inventories. 30,500 Short-term borrowings 8,300 Notes receivable (long-term) 2,300 Notes payable (long-term) 54,500 Equipment 54,500 Contributed capital 103,000 Factory building 96,500 Retained earnings 37,800 During the year 2021, the following summarized transactions were completed: a. Purchased equipment that cost $20,600; paid $7,300 cash and signed a one year note for the balance. b. Issued 3,300 additional shares for $19,800 cash. c. Lent $8,300 to a manager, who signed a two-year note. d. Purchased short-term investments for $10,300 in cash. e. Paid $6,300 on the note in transaction (a) Borrowed $13,300 cash on December 31, 2021, from the bank and signed a note, payable June 30, 2022. g. Purchased a patent (an intangible asset) for $4,300 cash. h. Built an addition to the factory for $28,900; paid $10,300 in cash and signed a three-year note for the balance. Hired a new president at the end of the year. The contract was for $91,500 per year plus options to purchase company shares at a < Prev 2 of 3 Next >