Question

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: $ 24,000 Accounts payable Cash $23,000 3,700 7,300 44,000 11,000 Investments (short-term) 3,100 Accrued liabilities payable 4,700 28,000 Notes payable (current) Notes payable (noncurrent) Common stock Additional paid-in capital Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles 1,200 48,000 109,000 Retained earnings 99,000 34,500 4,500 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $9,000 cash. b. Lent $5,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $25,000; paid $5,800 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 $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 1,900 shares of $0.50 par value common stock for $16,000 cash. f. Borrowed $13,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,600 cash. h. Built an addition to the factory for $24,000; paid $7,200 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,300.

Answer 1

Answer:

Cash					Investments (short-term)
Beg. Bal.	24,000				Beg. Bal.	3,100
(e)	16,000	9,000	(a)		(a)	9,000
(f)	13,000	5,300	(b)
(i)	1,300	5,800	(c)
		2,600	(g)		End. Bal.	12,100
		7,200	(h)
End. Bal.	24,400
Accounts receivable					Inventory
Beg. Bal.	4,700				Beg. Bal.	28,000
End. Bal.	4,700				End. Bal.	$28,000
Notes receivable (long-term)					Equipment
Beg. Bal.	1,200				Beg. Bal.	48,000
(b)	5,300				(c)	25,000	1,300	(i)
End. Bal.	6,500				End. Bal.	$71,700
Factory building					Intangibles
Beg. Bal.	109,000				Beg. Bal.	4,500
(h)	24,000				(g)	2,600
End. Bal.	133,000				End. Bal.	7,100
Accounts payable					Accrued liabilities payable
Beg. Bal.		23,000			Beg. Bal.		3,700
End. Bal.		23,000			End. Bal.		3,700
Notes payable (current)					Notes payable (non-current)
Beg. Bal.		7,300			Beg. Bal.		44,000
		19,200	(c)				16,800	(h)
		13,000	(f)
End. Bal.		39,500			End. Bal.		60,800
Common stock					Additional paid-in capital
Beg. Bal.		11,000			Beg. Bal.		99,000
		950	(e)				15,050	(e)
End. Bal.		11,950			End. Bal.		114,050
Retained earnings
Beg. Bal.		34,500
End. Bal.		34,500

Note: No Entry for 'Event d' because no transaction.