3,000 Accrued liabilities payable 3,300 Notes payable (current) 29,000 Notes payable (noncurrent) 2.400 Long-term lease liabilities 47
3,000 Accrued liabilities payable 3,300 Notes payable (current) 29,000 Notes payable (noncurrent) 2.400 Long-term lease liabilities 47
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Required information
[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
Operating lease right-of-use assets
Intangible assets
Account Titles
Cash
Required:
4. Prepare a trial balance at December 31 of the current year.
JAGUAR PLASTICS COMPANY
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $7,400 cash.
b. Lent $6,400 to a supplier, who signed a two-year note.
c. Leased equipment that cost $26,000; paid $5,000 cash and signed a five-year right-of-use lease for the balance.
d. Hired a new president at the end of the year. The contract was for $83,000 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.
Investments (short-term)
Accounts receivable
Inventory
Notes receivable (long-term)
e. Issued an additional 2,000 shares of $0.50 par value common stock for $12,000 cash.
f. Borrowed $14,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $1,300 cash.
h. Built an addition to the factory for $29,000; paid $8,100 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,900.
$24,000 Accounts payable
3,000 Accrued liabilities payable
3,300 Notes payable (current)
29,000 Notes payable (noncurrent)
2,400 Long-term lease liabilities
49,000 Common stock
Trial Balance
At December 31
Equipment
Factory building
Operating lease right-of-use assets
Intangible assets
Accounts payable
Accrued liabilities payable
Notes payable (current)
Notes payable (noncurrent)
Long-term lease liabilities
Common stock
Additional paid-in capital
Retained earnings
Totals
97,000 Additional paid-in capital
130,000 Retained earnings
4,400
Debit
0
$22,000
2,100
6,600
Credit
40,000
65,000
0
10,300
92,700
103,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ee78449-2ece-4e16-bf0e-8b9ab0fb11a9%2Fb5fb112b-75b3-46e4-b74b-afc36c382184%2Fecpz6n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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
Operating lease right-of-use assets
Intangible assets
Account Titles
Cash
Required:
4. Prepare a trial balance at December 31 of the current year.
JAGUAR PLASTICS COMPANY
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $7,400 cash.
b. Lent $6,400 to a supplier, who signed a two-year note.
c. Leased equipment that cost $26,000; paid $5,000 cash and signed a five-year right-of-use lease for the balance.
d. Hired a new president at the end of the year. The contract was for $83,000 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.
Investments (short-term)
Accounts receivable
Inventory
Notes receivable (long-term)
e. Issued an additional 2,000 shares of $0.50 par value common stock for $12,000 cash.
f. Borrowed $14,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $1,300 cash.
h. Built an addition to the factory for $29,000; paid $8,100 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,900.
$24,000 Accounts payable
3,000 Accrued liabilities payable
3,300 Notes payable (current)
29,000 Notes payable (noncurrent)
2,400 Long-term lease liabilities
49,000 Common stock
Trial Balance
At December 31
Equipment
Factory building
Operating lease right-of-use assets
Intangible assets
Accounts payable
Accrued liabilities payable
Notes payable (current)
Notes payable (noncurrent)
Long-term lease liabilities
Common stock
Additional paid-in capital
Retained earnings
Totals
97,000 Additional paid-in capital
130,000 Retained earnings
4,400
Debit
0
$22,000
2,100
6,600
Credit
40,000
65,000
0
10,300
92,700
103,400
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