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 $22,600 Accounts payable 3,500 Accrued liabilities payable 3,100 Notes payable (current) 33,280 Notes payable (noncurrent) 1,680 Common stock 58,680 Additional paid-in capital 94,000 Retained earnings 4,600 $20,000 3,800 7,800 46,000 19, 180 99,900 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 5 5. Prepare a classified balance sheet at December 31 of the current year. JAGUAR PLASTICS COMPANY Balance Sheet Assets Liabilities or Stockholders' Equity