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

Page.No O Answen T- accounts 162 Cash Cash Balance $26000 $8300 $ 14000 $ 5300 $17000 $ 5000 $ 2800 $ 1000 $7300 Balance $29500 26000 + 14000 +1H000 + 1200 Balance 8300- 5300 - 5000 -2800- 300 $ 29500 Investment (ahont -borm) Invesfmenta Cahort tenm) $2400 Balance $8 300 $10700 Balance Balance 2400+ 8300 $ 10700

Poge. Accounts geceivable Accounts oicceivable Balance $4100 Inventory Inventory Balance $26000 term) Notes oecivable C lang Notes vreccivable ( long -term) Balance $ 1800 $5300 $ 7100 Balance Eguiprnent Fquipment Balance $ 53000 $ 1200 $ 28000 Balance 79800 $ 19800 53000 + 28000 - 120o Balance

Paga. NO ( 3, facbory building facdory building $94 000 $25000 Balan ce Balance $119000 Jatangibles Intangibles $ 3400 Balance $2800 Balance $ 6500 $6500 Balance 3700 + 2800 s Acsoenk Payeble Accounts payable Balance $ 16000 Acerved liabiltios payable Accroed liabilitics paijable 2700 Balance

Paga. alotes payable (hont form) NO Notes payable (ohort tepm) $6200 Balance $5000 $17000 08200 Balance Balance 6 200 + 5000 + 1400 O $ 28200 dete payable (long tum) Notes pay able (lorgterm) $ 44000 Balance $ 4 300 $51300 Balance Balance $51300 44000 + 4300 Common afock Common afoch $9900 Balance $1050 10950 Balance > a100X $0.50 - $41050

» Balance 9900 + 1050 $10950 Addition al pid Capital Adition al paid Pn capital Balan e $ 89100 $ 12950 $ 10 2050 Balance Ca100x O-50) $ 14000 $ 12950 Balance 89100 + 12950 $ 10 2050 Retained econings $43100 Balance