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: Cash Investments (short- term) Accounts receivable $15,000 4,000 7,000 Inventory $22,000 Accounts payable Accrued liabilities 3,000 payable Notes payable 3,000 (current) 20,000 Notes payable (noncurrent) 1,000 Common stock Additional paid-in capital 90,000 Retained earnings 5,000 47,000 Notes receivable (long-term) 10,000 Equipment Factory building Intangibles 80,000 31,000 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $10,000 cash. b. Lent $5,000 to a supplier, who signed a two-year note. c. Purchased equipment that cost $18,000; paid $5,000 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 $85,000 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 2,000 shares of $0.50 par value common stock for $11,000 cash. f. Borrowed $9,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000. Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet. (Two items have been given in the cash T-account as examples).

Answer 1

4)

JAGUAR PLASTICS COMPANY
Trial Balance
At December 31
Account Titles	Debit	Credit
Cash	$12,000
Investments (short-term)	$13,000
Accounts receivable	$3,000
Inventory	$20,000
Notes receivable (long-term)	$6,000
Equipment	$67,000
Factory building	$114,000
Intangibles	$8,000
Account payable		$15,000
Accrued liabilities payable		$4,000
Notes payable (current)		$29,000
Notes payable (non-current)		$63,000
Common stock		$11,000
Additional paid-in capital		$90,000
Retained earnings		$31,000
Totals	$243,000	$243,000

Working notes:

Cash					Investments (Short-term)
Beg. Bal.	$22,000	$10,000	a)		Beg. Bal.	$3,000
e)	$11,000	$5,000	b)		a)	$10,000
f)	$9,000	$5,000	c)
i)	$1,000	$3,000	g)
		$8,000	h)		End. Bal.	$13,000
End. Bal.	$12,000
Accounts Receivable					Inventory
Beg. Bal.	$3,000				Beg. Bal.	$20,000
End. Bal.	$3,000				End. Bal.	$20,000
Notes Receivable (long-term)					Equipment
Beg. Bal.	$1,000				Beg. Bal.	$50,000	$1,000	i)
b)	$5,000				c)	$18,000
End. Bal.	$6,000				End. Bal.	$67,000
Factory Building					Intangibles
Beg. Bal.	$90,000				Beg. Bal.	$5,000
h)	$24,000				g)	$3,000
End. Bal.	$114,000				End. Bal.	$8,000
Accounts Payable					Accrued Liabilities Payable
Beg. Bal.		$15,000			Beg. Bal.		$4,000
					End. Bal.		$4,000
End. Bal.		$15,000
Notes Payable (Current)					Notes Payable (Non-current)
Beg. Bal.		$7,000			Beg. Bal.		$47,000
		$13,000	c)				$16,000	h) 24,000 - $8,000
		$9,000	f)		End. Bal.		$63,000
End. Bal.		$29,000
Common Stock					Additional Paid-in Capital
Beg. Bal.		$10,000			Beg. Bal.		$80,000
		$1,000	e) 2,500 * $0.5				$10,000	e) $11,000 - $1,000
End. Bal.		$11,000			End. Bal.		$90,000
Retained Earnings
Beg. Bal.		$31,000
End. Bal.		$31,000