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-tern) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $22,000 Accounts payable 3,000 Accrued liabilities payable 3,000 Notes payable (current) 20,000 Notes payable (noncurrent) 1,000 Common stock 50,000 Additional paid-in capital 90,000 Retained earnings 5,000 $15,000 4,000 7,000 47,000 10,000 80,000 31,000 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $10,000 cash. b. Lent $5,000 to a supplier, who signed a two-year note. c. Purchased equipment that cost $18,000; 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 $85,000 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 2.000 shares of $0.50 par value common stock for $11,000 cash. f. Borrowed $9,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance 1. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.

Answer 1

Jaguar Plastics Company Balance Sheet December 31
Assets			Liabilities
Current Assets			Current Liabilities
Cash	$12,000		Accounts Payable	$15,000
Investments: Short Term	13,000		Accrued Liabilities Payable	4,000
Accounts Receivable	3,000		Notes Payable ( current )	20,000
Inventory	20,000		Loan from Bank	9,000
Total Current Assets		$48,000	Total Current Liabilities		$48,000
Non-current assets			Long Term Liabilities
Notes Receivable:Long Term		6,000	Notes Payable ( non-current)		63,000
Property Plant and Equipment			Total Liabilities		111,000
Factory Building	114,000		Stockholders' Equity
Equipment	67,000	181,000	Common Stock	11,000
Intangible Assets		8,000	Additional Paid-in Capital	90,000
			Retained Earnings	31,000
			Total Stockholders Equity		132,000
Total Assets		$243,000	Total Liabilities and Stockholders Equity		$243,000