Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet.
Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet.
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
Investments (short-term)
$26,000 Accounts payable
$14,000
Accrued liabilities
2,600
3,600
payable
Accounts receivable
4,200 Notes payable (current)
6,200
Notes payable
Inventory
24,000
48,000
(noncurrent)
Notes receivable (long-
Long-term lease
2,900
term)
liabilities
65,000
Equipment
48,000 Common stock
10,100
Factory building
92,000
Additional paid-in
capital
90,900
Operating lease right-of-
use assets
135,000 Retained earnings
100,900
Intangible assets
4,000
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,200 cash.
b. Lent $5,800 to a supplier, who signed a two-year note.
c. Leased equipment that cost $19,000; paid $5,500 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 1,100 shares of $0.50 par value common stock for $19,000 cash.
f. Borrowed $12,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $1,400 cash.
h. Built an addition to the factory for $28,000; paid $7,500 in cash and signed a three-year note for the
balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,800.
Required:
1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet.
Answer is not complete.
Debit
Cash
Credit
Beginning
Balance
26,000
(e)
10,100X
2,600 (a)
(f)
48,000X
2,900X (b)
Ο
48,000X
(c)
(g)
(h)
Ending
Balance
126,600
Accounts Receivable
Debit
Beginning
4,200
Balance
Ending
4,200
Balance
33333
Investments (short-term)
Debit
Credit
Beginning
Balance
2,600
Ending
Balance
2,600
Inventory
Credit
Debit
Credit
Beginning
Balance
24,000
Ending
Balance
24,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd11a10e6-1fe9-42c6-97d6-7d4685842494%2F7063a9b0-cc6d-4593-9841-425db294e8ee%2Fzhhwps9_processed.png&w=3840&q=75)
Transcribed Image Text: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
records reflected the following:
Cash
Investments (short-term)
$26,000 Accounts payable
$14,000
Accrued liabilities
2,600
3,600
payable
Accounts receivable
4,200 Notes payable (current)
6,200
Notes payable
Inventory
24,000
48,000
(noncurrent)
Notes receivable (long-
Long-term lease
2,900
term)
liabilities
65,000
Equipment
48,000 Common stock
10,100
Factory building
92,000
Additional paid-in
capital
90,900
Operating lease right-of-
use assets
135,000 Retained earnings
100,900
Intangible assets
4,000
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,200 cash.
b. Lent $5,800 to a supplier, who signed a two-year note.
c. Leased equipment that cost $19,000; paid $5,500 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 1,100 shares of $0.50 par value common stock for $19,000 cash.
f. Borrowed $12,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $1,400 cash.
h. Built an addition to the factory for $28,000; paid $7,500 in cash and signed a three-year note for the
balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,800.
Required:
1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet.
Answer is not complete.
Debit
Cash
Credit
Beginning
Balance
26,000
(e)
10,100X
2,600 (a)
(f)
48,000X
2,900X (b)
Ο
48,000X
(c)
(g)
(h)
Ending
Balance
126,600
Accounts Receivable
Debit
Beginning
4,200
Balance
Ending
4,200
Balance
33333
Investments (short-term)
Debit
Credit
Beginning
Balance
2,600
Ending
Balance
2,600
Inventory
Credit
Debit
Credit
Beginning
Balance
24,000
Ending
Balance
24,000
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