Question

[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 $ 23,000 Accounts payable 3,400 Accrued liabilities payable 4,200 Notes payable (current) 26,000 Notes payable (noncurrent) 2,100 Common stock 49,000 Additional paid-in capital 101,000 Retained earnings 4,100 $21,000 3,600 5,300 48,000 10,100 90,900 33,900 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,400 cash. b. Lent $5,600 to a supplier who signed a two-year note. C. Purchased equipment that cost $23,000; paid $5,600 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 $87,000 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 1,400 shares of $0.50 par value common stock for $11,000 cash. f. Borrowed $16,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,900 cash. h. Built an addition to the factory for $30,000; paid $8,100 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,100.

Answer 1

We have asked to post the transactions into T accounts for the above events. Refer below images for more detailed solution.
Solution: year transactions to T- accounts for '52 : the Current post of the a ccounts each the balance sheet . on DY cash Alc Investments (short tem) Dr Beg. bel $23000 Beg. bal $3400 (e) $1l000 $ 3400 (b) $ 5600 (C) $ 1900 (8) (a) $ 8400 (a) () $16000 $ 5600 8) $3100 $ 8100 (h) End-bal 11800 End- bal 23500 DY Accounts Receivable. n ventory Beg. bal y a6000 Dr Deg- bal $ 4200 End.bal $ 42Q00 End- bal 3 २६००० Notes Recenvable (hung term) DY Eyuip ment Beg- bal $ 2100 Beg- bal 49o00 (b) $5600 c) $ 23000 $ 3100 (i) End-bal 7700 End- bal. 68900

Dr Factory Puilding Intangibles By-bal $4100 cr Beg.bal 4 101000 or Cr (h) $ 30000 Cs) $ 1900 End-bal 13100 End- bal 6000 ACcOonts payable ACCYued diabitities payoble Dr CY 21000 Beg.bal $ 3600 Beg-bal End. bal $21000 End- bal $3600 Notes payable (rret).r Dr Notes pagable (Non-corrent) or $3300 Beg.bel $ 48000 Beg bal $17400 cc) $ 16000 Cf) $21900 Ch) $38700 End-bal End - bal $ 69 900 Stock Dr Additional paid in Capital eg-bal $ 10100 $90900 Beg-bal $ 700 (e) (ucox-5) 10300 (e) [H000-70] $ 10800 End-bal End- bal $।o। ২০০ Retained Earings * 33900 Beg- bal End- bal f$33900