T Accounts:

Required information Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are $39,500 9,800 57,750 8,900 5,700 116,000 209,000 52,000 52,500 102,000 150,000 194,150 Cash Accounts Receivable Inventory Supplies Notes Receivable (due in three years) Equipment Buildings Land Accounts Payable Notes Payable (due in three years) Common Stock Retained Earnings During the year, the company had the following summarized activities: a. Purchased equipment that cost $24,350; paid $5,450 cash and signed a two-year note for the balance. b. Issued an additional 2,700 shares of common stock for $27,000 cash. c. Borrowed $99,000 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $6,100 cash e. Built an addition to the factory buildings for $68,000; paid $25,750 in cash and signed a three-year note for the balance f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked. 3. Summarize the journal entry effects from part 2 using T-accounts. TIP: Enter the December 31, balances as the m balances. Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal. End. Bal. Inventory Supplies Beg. Bal. Beg. Bal End. Bal. End. bal Buildings Equipment Beg. Bal Beg. Bal End. Bal End. Bal Notes Receivable Land Beg. Bal Beg. Bal End. Bal End. Bal. Accounts Payable Notes Payable Beg. Bal Beg. Bal End. Bal End. Bal Retained Earnings Common Stock Beg. Bal Beg. Bal End. Bal End. Bal