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 Inventory 24,000 Notes payable (noncurrent) 48,000 Notes receivable (long- Long-term lease 2,900 65,000 term) liabilities Equipment 48,000 Common stock 10,100 Factory building 92,000 Additional paid-in 90,900 capital Operating lease right-of-135,000 use assets 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.
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 Inventory 24,000 Notes payable (noncurrent) 48,000 Notes receivable (long- Long-term lease 2,900 65,000 term) liabilities Equipment 48,000 Common stock 10,100 Factory building 92,000 Additional paid-in 90,900 capital Operating lease right-of-135,000 use assets 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
2,600
[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
3,600
payable
Accounts receivable
4,200 Notes payable (current)
6,200
Notes payable
Inventory
24,000
48,000
(noncurrent)
Notes receivable (long-
term)
Long-term lease
2,900
65,000
liabilities
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
Investments (short-term)
Debit
Credit
Beginning
Balance
26,000
Beginning
Balance
2,600
(e)
10,100× 2,600X (a)
(f)
48,000X
2,900X (b)
(i)
48,000X
(c)
Ending
(g)
2,600
Balance
(h)
Ending
Balance
126,600
Accounts Receivable
Debit
Beginning
4,200
Balance
Ending
Balance
4,200
Inventory
Credit
Debit
Credit
Beginning
Balance
24,000
Ending
Balance
24,000
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