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 $21,000 Accounts payable $16,000 2,300 Accrued liabilities payable 3,300 Notes payable (current) 33,000 Notes payable (noncurrent) 1,600 Common stock 3,400 5,400 50,000 10,300 42,000 Additional paid-in capital 96,000 Retained earnings 4,800 92,700 26,200 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,400 cash. b. Lent $6,400 to a supplier who signed a two-year note. c. Purchased equipment that cost $21,000; paid $5,000 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 $83,000 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 2,800 shares of $0.50 par value common stock for $15,000 cash. f. Borrowed $11,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,300 cash. h. Built an addition to the factory for $27,000; paid $7,400 in cash and signed a three-year note for the balance. 1. Returned defective equipment to the manufacturer, receiving a cash refund of $3,000. P2-3 Part 5 5. Prepare a classified balance sheet at December 31 of the current year. JAGUAR PLASTICS COMPANY Assets Balance Sheet 0 0 0 Liabilities 0 0 Stockholders' Equity 0 $ 0