Question

Injection Plastics Company has been operating for three years. At December 31, 2017, the accounting records reflected the following: $ Cash Investments (short-term) Accounts receivable Inventories Notes receivable (long-term) Equipment Factory building $ 21,000 Intangibles 2.000 Accounts payable 3,000 Accrued liabilities 24,000 Short-term borrowings 1,000 Notes payable (long-term) 48.000 Contributed capital 90,000 Retained earnings 3,000 15,000 2,000 7,000 48,000 90.000 30,000 During the year 2018, the following summarized transactions were completed: a. Purchased equipment that cost $18,000; paid $6,000 cash and signed a one-year note for the balance. b. Issued 2,000 additional shares for $12,000 cash. c. Lent $7,000 to a manager, who signed a two-year note. d. Purchased short-term investments for $9,000 in cash. e. Paid $5,000 on the note in transaction (a). f. Borrowed $12,000 cash on December 31, 2018, from the bank and signed a note, payable June 30, 2019. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $25,000; paid $9,000 in cash and signed a three-year note for the balance. 1. Hired a new president at the end of the year. The contract was for $85,000 per year plus options to purchase company shares at a set price based on company performance. j. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000. Required: 1 & 2. Post the T-accounts for each of the accounts on the statement of financial position and enter the balances at the end of 2017 as beginning balances for 2018. Cash Investments (Short-term) Beg. bal. Beg. bal. End. bal.

Answer 1

Cash						Investment (Short-term)
Beg. Bal.	21000					Beg. Bal.	2000
Contributed Capital	12000	6000	Equipment			Cash	9000
Short-term borrowings	12000	7000	Notes Receivable (Long-term)
Equipment	0	9000	Investment (Short-term)
		5000	Notes Payable (Long-term)
		3000	Intangibles
		9000	Factory Building
End. Bal.		6000				End. Bal.		11000
Accounts Receivable						Inventories
Beg. Bal.	3000					Beg. Bal.	24000
End. Bal.		3000				End. Bal.		24000
Notes Receivable (Long-term)						Equipment
Beg. Bal.	1000					Beg. Bal.	48000
Cash	7000					Cash	6000	0	Cash
						Notes Payable (Long-term)	12000
End. Bal.		8000				End. Bal.		66000
Factory Building						Intangibles
Beg. Bal.	90000					Beg. Bal.	3000
Cash	9000					Cash	3000
Notes Payable (Long-term)	16000
End. Bal.		115000				End. Bal.		6000
Accounts Payable						Accrued Liabilities
		15000	Beg. Bal.					2000	Beg. Bal.
	15000		End. Bal.				2000		End. Bal.
Short-term borrowings						Notes Payable (Long-term)
		7000	Beg. Bal.					48000	Beg. Bal.
		12000	Cash			Cash	5000	12000	Equipment
								16000	Factory Building
	19000		End. Bal.				71000		End. Bal.
Contributed Capital						Retained Earnings
		90000	Beg. Bal.					30000	Beg. Bal.
		12000	Cash
	102000		End. Bal.				30000		End. Bal.

Note: transaction (a) and (f) may treated as short term notes payable, but there is no short term ledger available in your question,hence transaction (a) treated as Long term notes and transaction (f) treated as Short term borrowings.

If it shows incorrect please let me know...

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INJECTION PLASTICS COMPANY
Trial Balance
At December 31, 2018
	Debit ($)	Credit ($)
Cash	6000
Investment (Short-term)	11000
Accounts Receivable	3000
Inventories	24000
Notes Receivable (Long-term)	8000
Equipment	66000
Factory Building	115000
Intangibles	6000
Accounts Payable		15000
Accrued Liabilities		2000
Short-term borrowings		19000
Notes Payable (Long-term)		71000
Contributed Capital		102000
Retained Earnings		30000
	239000	239000

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INJECTION PLASTICS COMPANY Trial Balance As at December 31, 2018 Liabilities Assets Current Assets Cash Investment (Short-term) Accounts Receivable Inventories $ $ $ $ Current Liabilities 6,000 Accounts Payable 11,000 Accrued Liabilities 3,000 Short-term borrowings 24,000 15,000 2,000 19,000 $ § 36,000 Total Current liabilities Non-current liabilities 44,000 Notes Payable (Long-term) Total Current Assets $ $ 71,000 $ 1,07,000 Non Current Assets Notes Receivable (Long-term) $ Equipment $ Factory Building $ Intangibles $ Total liabilities 8,000 66,000 Shareholders' Equity 1,15,000 Retained Earnings 6,000 Retained Earnings $ $ 1,02,000 30,000 Total Shareholders equity $ 1,32,000 Total Assets $ 2,39,000 Total liabilities Shareholders equity $ 2,39,000

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Current ratio= Current Assets/ Current Liability	44000/36000
	1.22

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Hope you Understood.
If you have any doubt please leave a comment.

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Thank you.