### 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**: $20,000 - **Investments (short-term)**: $3,300 - **Accounts receivable**: $3,600 - **Inventory**: $25,000 - **Notes receivable (long-term)**: $1,500 - **Equipment**: $45,000 - **Factory building**: $97,000 - **Intangibles**: $4,800 - **Accounts payable**: $19,000 - **Accrued liabilities payable**: $2,600 - **Notes payable (current)**: $6,000 - **Notes payable (non-current)**: $49,000 - **Common stock**: $10,200 - **Additional paid-in capital**: $91,800 - **Retained earnings**: $21,600 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,800 cash. b. Lent $6,100 to a supplier who signed a two-year note. c. Purchased equipment that cost $22,000; paid $5,000 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 $79,000 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 1,300 shares of $0.50 par value common stock for $12,000 cash. f. Borrowed $19,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $17,000 cash. h. Built an addition to the factory for $27,000; paid $8,800 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash
### 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**: $20,000 - **Investments (short-term)**: $3,300 - **Accounts receivable**: $3,600 - **Inventory**: $25,000 - **Notes receivable (long-term)**: $1,500 - **Equipment**: $45,000 - **Factory building**: $97,000 - **Intangibles**: $4,800 - **Accounts payable**: $19,000 - **Accrued liabilities payable**: $2,600 - **Notes payable (current)**: $6,000 - **Notes payable (non-current)**: $49,000 - **Common stock**: $10,200 - **Additional paid-in capital**: $91,800 - **Retained earnings**: $21,600 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,800 cash. b. Lent $6,100 to a supplier who signed a two-year note. c. Purchased equipment that cost $22,000; paid $5,000 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 $79,000 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 1,300 shares of $0.50 par value common stock for $12,000 cash. f. Borrowed $19,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $17,000 cash. h. Built an addition to the factory for $27,000; paid $8,800 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How to do T accounts in accounting?
![### 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**: $20,000
- **Investments (short-term)**: $3,300
- **Accounts receivable**: $3,600
- **Inventory**: $25,000
- **Notes receivable (long-term)**: $1,500
- **Equipment**: $45,000
- **Factory building**: $97,000
- **Intangibles**: $4,800
- **Accounts payable**: $19,000
- **Accrued liabilities payable**: $2,600
- **Notes payable (current)**: $6,000
- **Notes payable (non-current)**: $49,000
- **Common stock**: $10,200
- **Additional paid-in capital**: $91,800
- **Retained earnings**: $21,600
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,800 cash.
b. Lent $6,100 to a supplier who signed a two-year note.
c. Purchased equipment that cost $22,000; paid $5,000 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 $79,000 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 1,300 shares of $0.50 par value common stock for $12,000 cash.
f. Borrowed $19,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $17,000 cash.
h. Built an addition to the factory for $27,000; paid $8,800 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F266d5c88-4132-4eca-8561-6ebd3b0393f5%2F2dc025b3-7290-4c17-a48f-b8fba7dce5ee%2Fc4a27sa_processed.png&w=3840&q=75)
Transcribed Image Text:### 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**: $20,000
- **Investments (short-term)**: $3,300
- **Accounts receivable**: $3,600
- **Inventory**: $25,000
- **Notes receivable (long-term)**: $1,500
- **Equipment**: $45,000
- **Factory building**: $97,000
- **Intangibles**: $4,800
- **Accounts payable**: $19,000
- **Accrued liabilities payable**: $2,600
- **Notes payable (current)**: $6,000
- **Notes payable (non-current)**: $49,000
- **Common stock**: $10,200
- **Additional paid-in capital**: $91,800
- **Retained earnings**: $21,600
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,800 cash.
b. Lent $6,100 to a supplier who signed a two-year note.
c. Purchased equipment that cost $22,000; paid $5,000 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 $79,000 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 1,300 shares of $0.50 par value common stock for $12,000 cash.
f. Borrowed $19,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $17,000 cash.
h. Built an addition to the factory for $27,000; paid $8,800 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education