### 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
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