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 Accounts receivable Inventory Investments (short-term) Notes receivable (long-term) Equipment Factory building Operating lease right-of-use assets Intangible assets $27,000 3,800 Accounts payable Accrued liabilities payable 3,200 Notes payable (current) 33,000 Notes payable (noncurrent) 2,700 Long-term lease liabilities Common stock $14,000 3,100 7,100 49,000 64,000 57,000 10,700 140,000 3,200 90,000 Additional paid-in capital Retained earnings 96,300 115,700 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,000 cash. b. Lent $5,000 to a supplier, who signed a two-year note. c. Leased equipment that cost $18,000; paid $6,000 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 $77,000 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 1,800 shares of $0.50 par value common stock for $14,000 cash. f. Borrowed $16,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,000 cash. h. Built an addition to the factory for $29,000; paid $7,200 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,300.
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 Accounts receivable Inventory Investments (short-term) Notes receivable (long-term) Equipment Factory building Operating lease right-of-use assets Intangible assets $27,000 3,800 Accounts payable Accrued liabilities payable 3,200 Notes payable (current) 33,000 Notes payable (noncurrent) 2,700 Long-term lease liabilities Common stock $14,000 3,100 7,100 49,000 64,000 57,000 10,700 140,000 3,200 90,000 Additional paid-in capital Retained earnings 96,300 115,700 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,000 cash. b. Lent $5,000 to a supplier, who signed a two-year note. c. Leased equipment that cost $18,000; paid $6,000 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 $77,000 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 1,800 shares of $0.50 par value common stock for $14,000 cash. f. Borrowed $16,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,000 cash. h. Built an addition to the factory for $29,000; paid $7,200 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,300.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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
Accounts receivable
Inventory
Investments (short-term)
Notes receivable (long-term)
Equipment
Factory building
Operating lease right-of-use assets
Intangible assets
$27,000
3,800
Accounts payable
Accrued liabilities payable
3,200 Notes payable (current)
33,000 Notes payable (noncurrent)
2,700 Long-term lease liabilities
Common stock
$14,000
3,100
7,100
49,000
64,000
57,000
10,700
140,000
3,200
90,000 Additional paid-in capital
Retained earnings
96,300
115,700
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,000 cash.
b. Lent $5,000 to a supplier, who signed a two-year note.
c. Leased equipment that cost $18,000; paid $6,000 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 $77,000 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 1,800 shares of $0.50 par value common stock for $14,000 cash.
f. Borrowed $16,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $2,000 cash.
h. Built an addition to the factory for $29,000; paid $7,200 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,300.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa19de132-5df2-4247-866f-e69ff5d689e5%2F0ebf947f-b9bf-4353-92fd-2251cd15c55f%2Fuc4xo9_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Accounts receivable
Inventory
Investments (short-term)
Notes receivable (long-term)
Equipment
Factory building
Operating lease right-of-use assets
Intangible assets
$27,000
3,800
Accounts payable
Accrued liabilities payable
3,200 Notes payable (current)
33,000 Notes payable (noncurrent)
2,700 Long-term lease liabilities
Common stock
$14,000
3,100
7,100
49,000
64,000
57,000
10,700
140,000
3,200
90,000 Additional paid-in capital
Retained earnings
96,300
115,700
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,000 cash.
b. Lent $5,000 to a supplier, who signed a two-year note.
c. Leased equipment that cost $18,000; paid $6,000 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 $77,000 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 1,800 shares of $0.50 par value common stock for $14,000 cash.
f. Borrowed $16,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $2,000 cash.
h. Built an addition to the factory for $29,000; paid $7,200 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,300.
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