P2-3 Recording Transactions in T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2, 4, 5

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Cougar Plastics Company has been operating for three years. At December 31, 2011, the accounting records reflected the following:

Cash	$	21,000		Intangibles	$	4,500
Investments (short-term)		3,200		Accounts payable		13,000
Accounts receivable		4,400		Accrued liabilities payable		2,100
Inventory		32,000		Notes payable (short-term)		7,700
Notes receivable (long-term)		1,900		Long-term notes payable		48,000
Equipment		42,000		Contributed capital		102,000
Factory building		106,000		Retained earnings		42,200

During the year 2012, the company had the following summarized activities:

a.	Purchased short-term investments for $8,100 cash.
b.	Lent $6,100 to a supplier who signed a two-year note .
c.	Purchased equipment that cost $25,000; paid $5,100 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 $82,000 per year plus options to purchase company stock at a set price based on company performance.
e.	Issued an additional 2,900 shares of capital stock for $16,000 cash.
f.	Borrowed $18,000 cash from a local bank, payable in three months.
g.	Purchased a patent (an intangible asset) for $1,700 cash.
h.	Built an addition to the factory for $21,000; paid $7,400 in cash and signed a three-year note for the balance.
i.	Returned defective equipment to the manufacturer, receiving a cash refund of $3,500.