Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $28,000 Accounts payable 3,200 Accrued liabilities payable 4,100 Notes payable (current) 33,000 Notes payable (noncurrent) 1,400 Common stock 55,000 Additional paid-in capital 99,000 Retained earnings 4,300 $14,000 3,100 5,500 44,000 10,400 93,600 57,400 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,100 cash. b. Lent $5,100 to a supplier who signed a two-year note. c. Purchased equipment that cost $20,000; paid $5,400 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 $89,000 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 1,900 shares of $0.50 par value common stock for $17,000 cash. f. Borrowed $18,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,700 cash. h. Built an addition to the factory for $27,000; paid $7,000 in cash and signed a three-year note for the balance 1. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000. Cash 28,000 Investments (short-term) 3,200 Beg. Bal Beg. Bal 8,100(a) 5,100 (6) End. Bal. End. Bal. Accounts Receivable 4,100 Inventory 33,000 Beg. Bal. Beg. Bal. End. Bal End, Bal. Notes Receivable (long-term) 1,400 Equipment 55,000 Beg. Bal Beg. Bal. End. Bal End. Bal. Factory Building 99,000 Intangibles 4,300 Beg. Bal. Beg. Bal. Accounts Payable 14,000 Beg. Bal. Accrued Liabilities Payable 3,100 Beg. Bal. End. Bal. End. Bal. Notes payable (current) 5,500 Notes payable (noncurrent) 44,000 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Common Stock 10,400 Additional Paid-in Capital 93,600 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Retained Earnings 57,400 Beg. Bal. End. Bal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Accounting Volume 1 Financial Accounting

Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax

1st Edition

1593995946, 978-1593995942

More Books

Students also viewed these Accounting questions

Question

Why is discipline so very important in organizations?

Answered: 1 week ago

Question

Do I own something similar already?

Answered: 1 week ago