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 $22,000 Accounts payable 3,500 Accrued liabilities payable 3,100 Notes payable (current) 33,000 Notes payable (noncurrent) 1,600 Common stock 58,000 Additional paid-in capital 94,000 Retained earnings 4,600 $20,000 3,800 7,800 46,000 10,100 90,900 41,200 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,900 cash. b. Lent $6,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $25,000; paid $5,800 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 $88,000 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 1,500 shares of $0.50 par value common stock for $11,000 cash. f. Borrowed $19,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,500 cash. h. Built an addition to the factory for $22,000; paid $7,200 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $2,900. P2-3 Part 1 and 2 Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet. (Two items have been given in the cash T-account as examples). Cash 22,000 Investments (short-term) 3.500 Beg Bal Beg Bal e) 7,900 (a) 6,300 (b) End. Bal. 3.500 End Bal 7.8001 Accounts Receivable 3.1001 Inventory 33 0001 Beg Bal Beg Bal End Bal 3,1001 End. Bal 33 000 Notes Receivable (long-term) Equipment 58 000 Beg. Bal 1,600 Beg Bal End, Bal 1,600 End. Bal 58 000 Factory Building 940001 Intangibles 4 600 Beg Bal Beg Bal End, Bal 94.000 End. Bal. 4,600 Accounts Payable 20,000 Accrued Liabilities Payable 3.800 Bog. Bal Beg Bal End. Bal 20 000 End. Bal 3 800 Notes payable (current) 7.800 Notes payable (noncurrent) 46 000 Beg Bal Beg Bal End. Bal 7.800 End. Bal 46.000 Common Stock 10,100 Additional Paid-in Capital 90 9001 Beg Bal Beg Bal 900 End. Bal 10.100 End. Bal. 90.900 Retained Earnings 41.200 Beg Bal End. Bal. 0 41,200