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) $ 41,250. 8,850 63,000 8,750 6,050 115,500 197,000 42,500 Equipment Buildings Land Accounts Payable 37,500 127,000 Notes Payable (due in three years) Common Stock 150,000 Retained Earnings 168,400 During the year, the company had the following summarized activities: a. Purchased equipment that cost $24,300; paid $8,000 cash and signed a two-year note for the balance. b. Issued an additional 3,300 shares of common stock for $33,000 cash. c. Borrowed $98,500 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $6,700 cash. e. Built an addition to the factory buildings for $45,250; paid $15,000 in cash and signed a three-year note for the balance. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked. 2. Record the transaction effects determined in part 1 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field).
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) $ 41,250. 8,850 63,000 8,750 6,050 115,500 197,000 42,500 Equipment Buildings Land Accounts Payable 37,500 127,000 Notes Payable (due in three years) Common Stock 150,000 Retained Earnings 168,400 During the year, the company had the following summarized activities: a. Purchased equipment that cost $24,300; paid $8,000 cash and signed a two-year note for the balance. b. Issued an additional 3,300 shares of common stock for $33,000 cash. c. Borrowed $98,500 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $6,700 cash. e. Built an addition to the factory buildings for $45,250; paid $15,000 in cash and signed a three-year note for the balance. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked. 2. Record the transaction effects determined in part 1 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Show work please without plagiarism please i give up vote
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:
Cash
Accounts Receivable.
Inventory
Supplies
Notes Receivable (due in three years)
Equipment
Buildings
$ 41,250
8,850
63,000
8,750
6,050
115,500
197,000
42,500
37,500
Land
Accounts Payable
127,000
Notes Payable (due in three years)
Common Stock
150,000
Retained Earnings
168,400
During the year, the company had the following summarized activities:
a. Purchased equipment that cost $24,300; paid $8,000 cash and signed a two-year note for the balance.
b. Issued an additional 3,300 shares of common stock for $33,000 cash.
c. Borrowed $98,500 cash from a local bank, payable June 30, in two years.
d. Purchased supplies for $6,700 cash.
e. Built an addition to the factory buildings for $45,250; paid $15,000 in cash and signed a three-year note for the
balance.
Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked.
2. Record the transaction effects determined in part 1 using journal entries. (If no entry is required for a transaction/event, select "No
Journal Entry Required" in the first account field).
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