Question

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 $ 26,000 Accounts payable 2,400 Accrued liabilities payable 4,100 Notes payable (current) 26,000 Notes payable (noncurrent) 1,800 Common stock 53,000 Additional paid-in capital 94,000 Retained earnings 3,700 $ 16,000 2,700 6,200 44,000 9,900 89, 100 43,100 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,300 cash. b. Lent $5,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $28,000; 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 $81,000 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 2,100 shares of $0.50 par value common stock for $14,000 cash. f. Borrowed $17,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,800 cash. h. Built an addition to the factory for $25,000; paid $7,300 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,200.

Answer 1

Jaguar Plastics Company Balance Sheet December 31
Assets			Liabilities
Current Assets			Current Liabilities
Cash	29,500		Accounts Payable	16,000
			Accrued Liabilities Payable	2,700
Accounts Receivable	4,100		Short Term Notes Payable	46,200
Inventory	26,000		Total Current Liabilities		64,900
Short Term Investments	10,700		Long Term Liabilities
Total Current Assets		70,300	Long Term Notes Payable		61,700
Notes Receivable ( Long Term )		7,100	Total Liabilities		126,600
Property Plant and Equipment			Stockholders Equity
Equipment	79,800		Common Stock	10,950
Factory Building	119,000	198,800	Additional Paid-in Capital	102,050
Intangibles		6,,500	Retained Earnings	43,100
			Total Stockholders Equity		156,100
Total Assets		$ 282,700	Total Liabilities and Stockholders Equity		$ 282,700