! Required information CP2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3 LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are: Cash Accounts Receivable Inventory Supplies Notes Receivable (due in three years). $ 59,000 6,650 59,750 6,900 4,650 Equipment Buildings Land Accounts Payable Notes Payable (due in three years) Common Stock Retained Earnings During the year, the company had the following summarized activities: 105,500 137,000 CP2-3 (Algo) Part 5 43,000 59,500 90,000 150,000 122,950 a. Purchased equipment that cost $31,950; paid $7,050 cash and signed a two-year note for the balance. b. Issued an additional 3,600 shares of common stock for $36,000 cash. c. Borrowed $56,500 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $5,700 cash. e. Built an addition to the factory buildings for $68,500; paid $28,500 in cash and signed a three-year note for the balance. f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked.
! Required information CP2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3 LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are: Cash Accounts Receivable Inventory Supplies Notes Receivable (due in three years). $ 59,000 6,650 59,750 6,900 4,650 Equipment Buildings Land Accounts Payable Notes Payable (due in three years) Common Stock Retained Earnings During the year, the company had the following summarized activities: 105,500 137,000 CP2-3 (Algo) Part 5 43,000 59,500 90,000 150,000 122,950 a. Purchased equipment that cost $31,950; paid $7,050 cash and signed a two-year note for the balance. b. Issued an additional 3,600 shares of common stock for $36,000 cash. c. Borrowed $56,500 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $5,700 cash. e. Built an addition to the factory buildings for $68,500; paid $28,500 in cash and signed a three-year note for the balance. f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Required information
CP2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and
Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3 LO 2-4, LO 2-5]
[The following information applies to the questions displayed below.]
Performance Plastics Company (PPC) has been operating for three years. The beginning
account balances are:
Cash
Accounts Receivable
Inventory
Supplies
Notes Receivable (due in three years)
Equipment
Buildings
Land
Accounts Payable
Notes Payable (due in three years)
Common Stock
Retained Earnings
During the year, the company had the following summarized activities:
CP2-3 (Algo) Part 5
a. Purchased equipment that cost $31,950; paid $7,050 cash and signed a two-year note for the
balance.
5. Prepare a classified balance sheet at December 31.
b. Issued an additional 3,600 shares of common stock for $36,000 cash.
c. Borrowed $56,500 cash from a local bank, payable June 30, in two years.
d. Purchased supplies for $5,700 cash.
e. Built an addition to the factory buildings for $68,500; paid $28,500 in cash and signed a
three-year note for the balance.
f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each
full year worked.
Current Assets
Cash
Supplies
Total Current Assets
Equipment
Buildings
Land
$ 59,000
6,650
59,750
6,900
4,650
Total Assets
105,500
137,000
43,000
59,500
90,000
Assets
$
150,000
122,950
PERFORMANCE PLASTICS COMPANY
Balance Sheet
At December 31
Current Liabilities
Accounts Payable
0 Total Current Liabilities
Current Liabilities
Notes Payable (long-term)
Retained Earnings
Total Stockholders' Equity
0 Total Liabilities and Stockholders' Equity
$
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5673a27d-ad1c-4412-8173-b5206762d0d3%2Fd304bc41-1e30-4983-8e39-59a2cb8187a0%2F52rjyue_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
CP2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and
Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3 LO 2-4, LO 2-5]
[The following information applies to the questions displayed below.]
Performance Plastics Company (PPC) has been operating for three years. The beginning
account balances are:
Cash
Accounts Receivable
Inventory
Supplies
Notes Receivable (due in three years)
Equipment
Buildings
Land
Accounts Payable
Notes Payable (due in three years)
Common Stock
Retained Earnings
During the year, the company had the following summarized activities:
CP2-3 (Algo) Part 5
a. Purchased equipment that cost $31,950; paid $7,050 cash and signed a two-year note for the
balance.
5. Prepare a classified balance sheet at December 31.
b. Issued an additional 3,600 shares of common stock for $36,000 cash.
c. Borrowed $56,500 cash from a local bank, payable June 30, in two years.
d. Purchased supplies for $5,700 cash.
e. Built an addition to the factory buildings for $68,500; paid $28,500 in cash and signed a
three-year note for the balance.
f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each
full year worked.
Current Assets
Cash
Supplies
Total Current Assets
Equipment
Buildings
Land
$ 59,000
6,650
59,750
6,900
4,650
Total Assets
105,500
137,000
43,000
59,500
90,000
Assets
$
150,000
122,950
PERFORMANCE PLASTICS COMPANY
Balance Sheet
At December 31
Current Liabilities
Accounts Payable
0 Total Current Liabilities
Current Liabilities
Notes Payable (long-term)
Retained Earnings
Total Stockholders' Equity
0 Total Liabilities and Stockholders' Equity
$
0
0
0
0
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