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 recordsreflected the following:CashInvestments (short-term)Accounts receivable.InventoryNotes receivable (long-term)EquipmentFactory buildingOperating lease right-of-use assetsIntangible assetsAccount TitlesCashRequired:4. Prepare a trial balance at December 31 of the current year.JAGUAR PLASTICS COMPANYDuring 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 purchasecompany stock at a set price based on company performance. The new president begins her position on January 1of next year.Investments (short-term)Accounts receivableInventoryNotes 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 payable3,000 Accrued liabilities payable3,300 Notes payable (current)29,000 Notes payable (noncurrent)2,400 Long-term lease liabilities49,000 Common stockTrial BalanceAt December 31EquipmentFactory buildingOperating lease right-of-use assetsIntangible assetsAccounts payableAccrued liabilities payableNotes payable (current)Notes payable (noncurrent)Long-term lease liabilitiesCommon stockAdditional paid-in capitalRetained earningsTotals97,000 Additional paid-in capital130,000 Retained earnings4,400Debit0$22,0002,1006,600Credit40,00065,000010,30092,700103,400

Trial balance is worksheet that is prepared periodically , at the end of the reporting period to…

Answered: 3,000 Accrued liabilities payable 3,300…

3,000 Accrued liabilities payable 3,300 Notes payable (current) 29,000 Notes payable (noncurrent) 2.400 Long-term lease liabilities 47

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

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