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.
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).
Cash 26,000 Investments (short-term) 2,400 Beg. Bal. Beg. Bal. 8,300 (a) 5,300 (6) 5,000 (c) (d) End. Bal. 2,400 End. Bal. 7,400 Accounts Receivable 4,100 Inventory 26,000 Beg. Bal. Beg. Bal. End. Bal. 4,100 End. Bal. 26,000 Notes Receivable (long-term) 1,800 Equipment 53,000 Beg. Bal. Beg. Bal. End. Bal. L 1,800 End. Bal. 53,000

Jaguar Plastics Company

T- Accounts:

Cash

Account Titles                         Debit         Credit

Beginning balance               $16,000

a. Short-term Investments                      $8,300

b. Note receivable (long-term)                 5,300

c. Equipment                                            5,000

e. Common stock                    1,050

e. Additional Paid-in Capital 12,950

f.  Note payable (current)     17,000

g. Intangible                                             2,800

h. Factory Building                                  7,300

i.  Equipment (refund)           1,200

Investments (short-term)

Account Titles                         Debit         Credit

Beginning balance                $2,700

a. Cash                                    8,300

Accounts receivable

Account Titles                        Debit         Credit

Beginning balance               $6,200

Inventory

Account Titles                       Debit         Credit

Beginning balance              $44,000

Notes receivable (long-term)

Account Titles                      Debit         Credit

Beginning balance             $ 9,900

b. Cash                                   5,300

Equipment

Account Titles                      Debit         Credit

Beginning balance             $89,100

c. Cash                                   5,000

c. Note Payable (short)       23,000

i.  Cash (refund)                                    $1,200

Factory building

Account Titles                     Debit         Credit

Beginning balance             $43,100

h. Cash                                   7,300

h. Note payable

      (non-current)                15,700

Intangibles

Account Titles                     Debit         Credit

Beginning balance                             $26,000

g. Cash                             $2,800

Accounts payable

Account Titles                     Debit         Credit

Beginning balance                             $2,400

Accrued liabilities payable

Account Titles                     Debit         Credit

Beginning balance                                 4,100

Notes payable (current)

Account Titles                     Debit         Credit

Beginning balance                               26,000

c. Equipment                                        23,000

f. Cash                                                   17,000

Notes payable (noncurrent)

Account Titles                     Debit         Credit

Beginning balance                                 1,800

h. Factory Building                              15,700

Common stock

Account Titles                     Debit        Credit

Beginning balance                            53,000

e. Cash                                                 1,050

Additional paid-in capital

Account Titles                     Debit         Credit

Beginning balance                            94,000

e. Cash                                               12,950

Retained earnings

Account Titles                     Debit         Credit

Beginning balance                               3,700

Explanation:

a) Data and Calculations:

Trial Balance as at December 31:

                                                Debit      Credit

Cash                                     $16,000

Investments (short-term)        2,700

Accounts receivable               6,200

Inventory                               44,000

Notes receivable (long-term) 9,900

Equipment                             89,100

Factory building                    43,100

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

Totals                              $211,000    $211,000

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