Question

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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: Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $ 21,000 Accounts payable 3,200 Accrued liabilities payable 3,800 Notes payable (current) 30,000 Notes payable (noncurrent) 2.100 Common stock 41,000 Additional paid-in capital 106,000 Retained earnings 3,900 $17,000 3,500 5,400 42,000 10,300 92,700 40,100 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,800 cash. b. Lent $6,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $27,000; paid $5,100 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 $80,000 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 2.400 shares of $0.50 par value common stock for $13,000 cash. f. Borrowed $14,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,300 cash. h. Built an addition to the factory for $29,000; paid $9,000 in cash and signed a three-year note for the balance. 1. Returned defective equipment to the manufacturer, receiving a cash refund of $3,200.

Answer 1

For Preparing balance sheet first we need to calculate the ending balance through posting the transaction to the below T- Accounts

Cash Cash Beg. Ball Ral 21,000 13,000 14,000 3,200 7,800 a) 6,300 b) 5,100 C) 2,300 g) 9,000 h) End. Bal 20,700 Beg. Bal Notes receivable (long-term) 2,100 6,300 End. Bal 8,400 Beg. Bal Intangibles 3,900 2,300 End. Bal 6,200 Common stock Beg. Bal 10,300 1,200 e) End. Bal 11,500

Investment (Short-term) 3,200 7,800 Accounts receivable 3,800 Beg. Bal Beg. Bal End. Bal 11,000 End. Bal 3,800 Inventory 30,000 Beg. Bal Beg. Bal Factory Building 106,000 29,000 End. Bal 30,000 End. Bal 135,000 Beg. Bal Equipment 41,000 27,000 Accrued liabilities payable 3,500 Beg. Bal 3,200 i) End. Bal 64,800 End. Bal 3,500 Accounts payable Beg. Bal 17,000 Beg. Bal Notes payable (Current) 5,400 21,900 C) 14,000 f) 41,300 End. Bal 17,000 End. Bal

Retained earnings Beg. Bal Notes payable (noncurrent) 42,000 20,000 h) Beg. Bal 40,100 End. Bal 62,000 End. Bal 40,100 Beg. Bal Additional paid in capital 92,700 11,800 e) End. Bal 104,500

Assets Current Assets Cash Investments Accounts receivable Inventory JAGUAR PLASTICS COMPANY Balance Sheet At December 31 Liabilities Current Liabilities 20,700 Accounts payable 11,000 Accrued Liabilities payable 3,800 Notes payable 30,000 Total current liabilities Long-term note payable 65,500 Total Liabilities 17,000 3,500 41,300 61,800 62,000 Total Current Assets 123,800 Non Current Assets: Notes receivable Equipment Factory Building Intangibles 8,400 Stockholders' Equity 64,800 Common stock 135,000 Additional paid in capital 6,200 Retained earnings 11,500 104,500 40,100 Total Non-current Asssets Total Assets 214,400 Total Stockholders' equity 279,900 Total Liabilities and stockholders' equity 156,100 279,900 $ $