Required information [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) $ 56,000 5,050 49,500 7,750 6,850 88,500 199,000 37,000 57,500 109,500 Equipment Buildings Land Accounts Payable Notes Payable (due in three years) Common Stock 150,000 Retained Earnings 132,650 During the year, the company had the following summarized activities: a. Purchased equipment that cost $27,850; paid $6,750 cash and signed a two-year note for the balance. b. Issued an additional 4,200 shares of common stock for $42,000 cash. c. Borrowed $67,500 cash from a local bank, payable June 30, in two. years. d. Purchased supplies for $7,350 cash. e. Built an addition to the factory buildings for $74,250; paid $36,500 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. . Summarize the journal entry effects from part 2 using T-accounts. TIP: Enter the December 31, balances as the month's beginning balances.
Required information [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) $ 56,000 5,050 49,500 7,750 6,850 88,500 199,000 37,000 57,500 109,500 Equipment Buildings Land Accounts Payable Notes Payable (due in three years) Common Stock 150,000 Retained Earnings 132,650 During the year, the company had the following summarized activities: a. Purchased equipment that cost $27,850; paid $6,750 cash and signed a two-year note for the balance. b. Issued an additional 4,200 shares of common stock for $42,000 cash. c. Borrowed $67,500 cash from a local bank, payable June 30, in two. years. d. Purchased supplies for $7,350 cash. e. Built an addition to the factory buildings for $74,250; paid $36,500 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. . Summarize the journal entry effects from part 2 using T-accounts. TIP: Enter the December 31, balances as the month's beginning balances.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
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Please provide answer in text (Without image)
Transcribed Image Text:Beginning Balance
Ending Balance
Dobit
Ending Balance
Beginning Balance
Debit
Endina Balance
Debit
Beginning Balance
Beginning Balance
Ending Balance
Debit
Ending Balance
Beginning Balance
Debit
Ending Balance
Debit
Beginning Balance
Cash
56,000
42,000
67,500
114,900
Inventory.
Equipment
88,500
27,850
116,350
6,750
7,350
36,500
Notes Receivable
Accounts Payable
Credit
Common Stock
Credit
Credit
Credit
Credit
Credit
150,000
42,000
192,000
Debit
Beginning Balance
Ending Balance
Debit
Beginning Balance
Ending Balance
Debit
Beginning Balance
Accounts Receivable
Ending Balance
Supplies
7,750
7,350
15,100
Buildings
199,000
74,250
273.250
Debit
Beginning Balance
Ending Balance
Debit
Beginning Balance
Ending Balance
Debit
Beginning Balance
Ending Balance
Credit
Credit
Credit
Land
Notes Payable
Credit
Retained Earnings
Credit
109,500
21,100
67,500
37,750
235,850
Credit
![Required information
[The following information applies to the questions displayed below.]
Performance Plastics Company (PPC) has been operating for three
years. The beginning account balances are:
$ 56,000
5,050
49,500
7,750
6,850
88,500
199,000
37,000
57,500
109,500
150,000
132,650
During the year, the company had the following summarized activities:
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
a. Purchased equipment that cost $27,850; paid $6,750 cash and
signed a two-year note for the balance.
b. Issued an additional 4,200 shares of common stock for $42,000
cash.
c. Borrowed $67,500 cash from a local bank, payable June 30, in two
years.
d. Purchased supplies for $7,350 cash.
e. Built an addition to the factory buildings for $74,250; paid $36,500 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.
3. Summarize the journal entry effects from part 2 using T-accounts. TIP: Enter the
December 31, balances as the month's beginning balances.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4f9ab4d5-fd75-4b09-8c85-55b02c367958%2F14548e36-7842-490e-bf25-864d72d6dedd%2Fgb4jtm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Performance Plastics Company (PPC) has been operating for three
years. The beginning account balances are:
$ 56,000
5,050
49,500
7,750
6,850
88,500
199,000
37,000
57,500
109,500
150,000
132,650
During the year, the company had the following summarized activities:
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
a. Purchased equipment that cost $27,850; paid $6,750 cash and
signed a two-year note for the balance.
b. Issued an additional 4,200 shares of common stock for $42,000
cash.
c. Borrowed $67,500 cash from a local bank, payable June 30, in two
years.
d. Purchased supplies for $7,350 cash.
e. Built an addition to the factory buildings for $74,250; paid $36,500 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.
3. Summarize the journal entry effects from part 2 using T-accounts. TIP: Enter the
December 31, balances as the month's beginning balances.
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