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 Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $ 24,000 Accounts payable 3,300 Accrued liabilities payable. 4,600 Notes payable (current) 25,000 Notes payable (noncurrent) 2,600 Common stock 48,000 Additional paid-in capital 106,000 Retained earnings 4,600 During the current year, the company had the following summarized activities: $16,000 3,100 5,400 48,000 10,700 96,300 38,600 a. Purchased short-term investments for $7,800 cash. b. Lent $5,200 to a supplier who signed a two-year note. c. Purchased equipment that cost $23,000; paid $4,700 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 $84,000 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 3,000 shares of $0.50 par value common stock for $16,000 cash. f. Borrowed $16,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,600 cash. h. Built an addition to the factory for $29,000; paid $8,400 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Investments (short-term)
Accounts receivable
Inventory
Notes receivable (long-term)
Equipment
Factory building
Intangibles
$ 24,000
Accounts payable
3,300 Accrued liabilities payable
4,600 Notes payable (current)
25,000 Notes payable (noncurrent)
2,600 Common stock.
48,000 Additional paid-in capital
106,000 Retained earnings
4,600
During the current year, the company had the following summarized activities:
$16,000
3,100
5,400
48,000
10,700
96,300
38,600
a. Purchased short-term investments for $7,800 cash.
b. Lent $5,200 to a supplier who signed a two-year note.
c. Purchased equipment that cost $23,000; paid $4,700 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 $84,000 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 3,000 shares of $0.50 par value common stock for $16,000 cash.
f. Borrowed $16,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $2,600 cash.
h. Built an addition to the factory for $29,000; paid $8,400 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.
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 Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $ 24,000 Accounts payable 3,300 Accrued liabilities payable 4,600 Notes payable (current) 25,000 Notes payable (noncurrent) 2,600 Common stock. 48,000 Additional paid-in capital 106,000 Retained earnings 4,600 During the current year, the company had the following summarized activities: $16,000 3,100 5,400 48,000 10,700 96,300 38,600 a. Purchased short-term investments for $7,800 cash. b. Lent $5,200 to a supplier who signed a two-year note. c. Purchased equipment that cost $23,000; paid $4,700 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 $84,000 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 3,000 shares of $0.50 par value common stock for $16,000 cash. f. Borrowed $16,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,600 cash. h. Built an addition to the factory for $29,000; paid $8,400 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.
P2-3 Part 5
5. Prepare a classified balance sheet at December 31 of the current year.
Assets
JAGUAR PLASTICS COMPANY
Balance Sheet
$
0
0
0
Liabilities
Stockholders' Equity
$
0
0
0
0
Transcribed Image Text:P2-3 Part 5 5. Prepare a classified balance sheet at December 31 of the current year. Assets JAGUAR PLASTICS COMPANY Balance Sheet $ 0 0 0 Liabilities Stockholders' Equity $ 0 0 0 0
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