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) Accounts receivable Inventories Notes receivable (long-term) Equipment Factory building $ 27,000 3,200 4,200 30,000 2,200 54,000 96,000 Intangibles Accounts payable Accrued liabilities Short-term borrowings Notes payable (long-term) Contributed capital Retained earnings $ 4,200 16,200 3,200 8,200 54,000 102,000 37,200 During the year 2021, the following summarized transactions were completed: a. Purchased equipment that cost $20,400; paid $7,200 cash and signed a one-year note for the balance. b. Issued 3,200 additional shares for $19,200 cash. c. Lent $8,200 to a manager, who signed a two-year note. d. Purchased short-term investments for $10,200 in cash. e. Paid $6,200 on the note in transaction (a). f. Borrowed $13,200 cash on December 31, 2021, from the bank and signed a note, payable June 30, 2022. g. Purchased a patent (an intangible asset) for $4,200 cash. h. Built an addition to the factory for $28,600; paid $10,200 in cash and signed a three-year note for the balance. 1. Hired a new president at the end of the year. The contract was for $91,000 per year plus options to purchase company shares at a set price based on company performance. j. Returned defective equipment to the manufacturer, receiving a cash refund of $2,200. Required: 1 & 2. Post the T-accounts for each of the accounts on the statement of financial position and enter the balances at the end of 2020 as beginning balances for 2021. Cash Investments (Short-term) Beg. bal. Beg., bal. End. bal. End. bal. Accounts Receivable Inventories Beg. bal. Beg. bal. End. bal. End. bal. Notes Receivable (Long-term) Equipment Beg. bal. Beg. bal. Notes Receivable (Long-term) Equipment Beg. bal. Beg. bal. End. bal. End. bal. Factory Building Intangibles Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Accrued Liabilities Beg. bal. Beg. bal. End. bal. End. bal. Short-Term Borrowings Notes Payable (Long-term) Beg. bal. Beg. bal. End. bal. End. bal. Short-Term Borrowings Notes Payable (Long-term) Beg. bal. Beg. bal. End. bal. End. bal. Contributed Capital Retained Earnings Beg. bal. Beg. bal. End. bal. End. bal. 3. This part of the question is not part of your Connect assignment. 4. Prepare a trial balance at December 31, 2021. INJECTION PLASTICS COMPANY Trial Balance At December 31, 2021 Debit Credit Cash Investments (short-term) Accounts receivable Inventories Notes receivable (long-term) Equipment Factory building Intangibles Accounts payable Accrued liabilities Short-term borrowings Notes payable (long-term) Contributed capital Retained earnings Totals 5. Prepare a classified statement of financial position at December 31, 2021. INJECTION PLASTICS COMPANY Statement of Financial Position As at December 31, 2021 Assets Liabilities Current assets: Current liabilities: Total Current liabilities Non-current Liabilities: Total current assets Non-current assets: Total liabilities Shareholders' Equity Total shareholders' equity Total liabilities and shareholders' equity Total assets 6. Compute the current ratio at December 31, 2021. (Round the final answer to 2 decimal places.) Current ratio
