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[The following information applies to the questions displayed below.) Cougar Plastics Company has been operating for three years. At December 31 of last year, the

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[The following information applies to the questions displayed below.) Cougar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: 4 Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $24,000 Accounts payable 3,900 Accrued liabilities payable 4,400 Notes payable (short-term) 30,000 Notes payable (long-term) 1,800 Common stock 51,000 Additional paid-in capital 95,000 Retained earnings 3,000 $19,000 3,900 6,100 47,000 9,800 88, 200 39, 100 ences During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,100 cash. b. Lent $6,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $27.000; paid $4,100 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 $81.000 per year plus options to purchase company stock at a set price based on company performance. e Issued an additional 1,400 shares of $0.50 par value common stock for $11000 cash. f. Borrowed $13,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $23,000; paid $8,200 in cash and signed a three-year note for the balance. I. Returned defective equipment to the manufacturer, receiving a cash refund of $3,700. Required information [The following information applies to the questions displayed below.) Granger Service Company, Inc., was organized by Ted Granger and five other investors. The following activities occurred during the year: a. Received $77,000 total cash from the six investors; each investor was issued 9,100 shares of common stock with a par value of $0.10 per share. b. Purchased equipment for use in the business at a cost of $25,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Signed an agreement with a cleaning service to pay $190 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $3,700 in cash and land valued at $22,000 in exchange for 1,700 shares of stock in the company e. Lent $3,200 to one of the investors who signed a note due in six months. f. Ted Granger borrowed $7,700 for personal use from a local bank, signing a one-year note. Required: 1. Create T-accounts for the following accounts: Cash, Notes Receivable, Equipment, Land, Notes Payable, Common Stock, and Additional Paid-in Capital. Beginning balances are $0. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts. Include good referencing for each T-account Notes Receivable Cash 0 Bog. Bal Bog. Bal 0 [The following information applies to the questions displayed below.) Cougar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: 4 Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $24,000 Accounts payable 3,900 Accrued liabilities payable 4,400 Notes payable (short-term) 30,000 Notes payable (long-term) 1,800 Common stock 51,000 Additional paid-in capital 95,000 Retained earnings 3,000 $19,000 3,900 6,100 47,000 9,800 88, 200 39, 100 ences During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,100 cash. b. Lent $6,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $27.000; paid $4,100 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 $81.000 per year plus options to purchase company stock at a set price based on company performance. e Issued an additional 1,400 shares of $0.50 par value common stock for $11000 cash. f. Borrowed $13,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $23,000; paid $8,200 in cash and signed a three-year note for the balance. I. Returned defective equipment to the manufacturer, receiving a cash refund of $3,700. Required information [The following information applies to the questions displayed below.) Granger Service Company, Inc., was organized by Ted Granger and five other investors. The following activities occurred during the year: a. Received $77,000 total cash from the six investors; each investor was issued 9,100 shares of common stock with a par value of $0.10 per share. b. Purchased equipment for use in the business at a cost of $25,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Signed an agreement with a cleaning service to pay $190 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $3,700 in cash and land valued at $22,000 in exchange for 1,700 shares of stock in the company e. Lent $3,200 to one of the investors who signed a note due in six months. f. Ted Granger borrowed $7,700 for personal use from a local bank, signing a one-year note. Required: 1. Create T-accounts for the following accounts: Cash, Notes Receivable, Equipment, Land, Notes Payable, Common Stock, and Additional Paid-in Capital. Beginning balances are $0. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts. Include good referencing for each T-account Notes Receivable Cash 0 Bog. Bal Bog. Bal 0

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