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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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.
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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