Question

P2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 (GL) 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 $22,000 Accounts payable 3,600 Accrued liabilities payable 4,900 Notes payable (current) 32,000 Notes payable (noncurrent) 1,800 Common stock 43,000 Additional paid-in capital 96,000 Retained earnings 4,300 $21,000 3,300 5,500 47,000 9,900 89, 100 31,800 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,600 cash. b. Lent $5,100 to a supplier who signed a two-year note. c. Purchased equipment that cost $19,000; paid $5,200 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 $89,000 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 1,300 shares of $0.50 par value common stock for $15,000 cash. f. Borrowed $15,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,200 cash. h. Built an addition to the factory for $21,000; 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 $2,800. Requirement General Journal General Ledger Trial Balance Balance Sheet Analysis General Journal tab - Prepare journal entries to record the transactions listed in (a) through (i). Review the accounts as shown in the General Ledger and Trial Balance tabs. General Ledger tab - Each journal entry is posted automatically to the General Ledger. Trial Balance tab - Your choice will determine the reported values on the financial statement tabs. Balance Sheet tab - Use the drop-downs to select the accounts that should be properly included on the Balance Sheet. Analysis tab - Compute the current ratio for the current year.

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Answer 1

Jaguar Plastics Company Requirement 1&2 Cash Beg. Bal. (e) Beg. Bal. (a) Investments (short-term) 3,600 7,600 22,000 15,000 15.000 2,800 (i) 7,600 (a) 5,100 (b) 5,200 (c) 2,200 (8) 8,000 (h) End. Bal. 11,200 End. Bal. 26,700 Accounts Receivable 4,900 Inventory 32,000 Beg. Bal. Beg. Bal. End. Bal. 4,900 End. Bal. 32,000 Beg. Bal. Notes Receivable (long-term) 1,800 5,100 Beg. Bal. Equipment 43,000 19,000 (b) (C) 2,800 (i) End. Bal. 6,900 End. Bal. 59,200 Beg. Bal. (h) Factory Building 96,000 21,000 Beg. Bal. (g) Intangibles 4,300 2,200 End. Bal. 1,17,000 End. Bal. 6,500 Accounts Payable 21,000 Accrued Liabilities Payable 3,300 Beg. Bal. Beg. Bal. End. Bal. 21,000 End. Bal. 3,300 Beg. Bal. Beg. Bal. Notes Payable (short-term) 5,500 13,800 (c) 15,000 () Long-Term Notes Payable 47,000 13,000 (h) End. Bal. 34,300 End. Bal. 60,000 Common Stock Beg. Bal. Beg. Bal. 9,900 650ie Additional Paid-in Capital 89,100 14,350 (e) End. Bal. 10,550 End. Bal. 1,03,450 Retained Earnings 31,800 Beg. Bal. End. Bal. 31,800

Credit 6,900 Jaguar Plastics Company Trial Balance At December 31, Account Titles Debit Cash $ 26,700 Investments (short- 11,200 term) Accounts receivable 4,900 Inventory 32,000 Notes receivable (long- term) Equipment 59,200 Factory building 1,17,000 Intangibles 6,500 Accounts payable Accrued liabilities payable Notes payable (short- term) Notes payable (long- term) Common stock Additional paid in capital Retained earnings Totals $ 2,64,400$ 21,000 3,300 34,300 60,000 10,550 1,03,450 31,800 2,64,400 Prepare a classified balance sheet at December 31, 2015. COUGAR PLASTICS COMPANY Balance Sheet At December 31, 2015 Liabilities Current liabilities: 26,700 Accounts payable $ Assets Current assets: Cash $ 21,000 Investments $ 11,200 Accrued liabilities payable $ 3,300 Accounts receivable $ 4,900 Notes payable (short- term) $ 34,300 $ 32,000 Inventory Notes receivable (short-term) 6,900 Total current liabilities 58,600 Total current assets 81,700 Non Current liabilities: Notes payable (long-term) 63,000 1,21,600 Non-current assets: Equipment Factory building Intangibles Total liabilities 59,200 Stockholders' Equity 1,17,000 Common stock 6,500 Additional paid-in capital Retained earnings 10,550 1,03,450 31,800 Total non-current assets 1,82,700 Total stockholders' equity 1,45,800 Total assets $ Total liabilities and 2,64,400 stockholders' equity $ 2,67,400 Compute the current ratio. (Round your answer to 2 decimal places.) Current ratio 1.39 Current Ratio = Current Assets / Current Liabilities = 81700 / 58600 = 1.39