Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash $ 20,000 Accounts payable $ 20,000 Investments (short-term) 3,200 Accrued liabilities payable 2,700 Accounts receivable 4,500 Notes payable (current) 5,000 Inventory 26,000 Notes payable (noncurrent) 49,000 Notes receivable (long-term) 2,000 Common stock 9,200 Equipment 46,000 Additional paid-in capital 82,800 Factory building 94,000 Retained earnings 32,000 Intangibles 5,000 During the current year, the company had the following summarized activities: Purchased short-term investments for $8,400 cash. Lent $6,000 to a supplier who signed a two-year note. Purchased equipment that cost $23,000; paid $4,900 cash and signed a one-year note for the balance. Hired a new president at the end of the year. The contract was for $89,000 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. Issued an additional 1,200 shares of $0.50 par value common stock for $12,000 cash. Borrowed $18,000 cash from a local bank, payable in three months. Purchased a patent (an intangible asset) for $2,700 cash. Built an addition to the factory for $24,000; paid $7,400 in cash and signed a three-year note for the balance. Returned defective equipment to the manufacturer, receiving a cash refund of $2,800. prepare a classified balance sheet at December 31 of the current year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following:


Cash	$	20,000	Accounts payable	$	20,000
Investments (short-term)		3,200	Accrued liabilities payable		2,700
Accounts receivable		4,500	Notes payable (current)		5,000
Inventory		26,000	Notes payable (noncurrent)		49,000
Notes receivable (long-term)		2,000	Common stock		9,200
Equipment		46,000	Additional paid-in capital		82,800
Factory building		94,000	Retained earnings		32,000
Intangibles		5,000

During the current year, the company had the following summarized activities:

Purchased short-term investments for $8,400 cash.
Lent $6,000 to a supplier who signed a two-year note.
Purchased equipment that cost $23,000; paid $4,900 cash and signed a one-year note for the balance.
Hired a new president at the end of the year. The contract was for $89,000 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.
Issued an additional 1,200 shares of $0.50 par value common stock for $12,000 cash.
Borrowed $18,000 cash from a local bank, payable in three months.
Purchased a patent (an intangible asset) for $2,700 cash.
Built an addition to the factory for $24,000; paid $7,400 in cash and signed a three-year note for the balance.
Returned defective equipment to the manufacturer, receiving a cash refund of $2,800.
prepare a classified balance sheet at December 31 of the current year

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