P2-3 Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2 2-5 The following information applies to the questions displayed below. Cougar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: $22,000 Accounts payable Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $16,000 3,500 8,000 42,000 10,300 92,700 40,300 2,300 Accrued liabilities payable 3,100 Notes payable (short-term) 28,000 Notes payable (ong-term) 1,900 Common stock 52,000 Additional paid-in capital 00,000 Retained earnings 3,500 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,900 cash. b. Lent $6,200 to a supplier who signed a two-year note. c. Purchased equipment that cost $26,000; paid $5,300 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 $81,000 per year plus options to purchase company stock at a set price based on company performance e. Issued an additional 2,900 shares of $0.50 par value common stock for $20,000 cash. f Borrowed $12,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,100 cash. h. Built an addition to the factory for $25,000; paid $7,500 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,200