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 $ 24,000 Accounts payable 2,900 Accrued liabilities payable 4,900 Notes payable (current) 26,000 Notes payable (noncurrent) 1,300 Common stock 56,000 Additional paid-in capital 104,000 Retained earnings 4,200 $ 13,000 2,900 6,500 41,000 10,400 93,600 55,900 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,200 cash. b. Lent $5,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $27,000; paid $4,500 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 2,200 shares of $0.50 par value common stock for $17,000 cash. f. Borrowed $15,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,300 cash. h. Built an addition to the factory for $20,000; paid $7,500 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,400.

Answer 1

51 Credit Date General Journal 31-Dec Short-term Investment Cash Debit 7200 52 7200 54 55 5300 31-Dec Notes Receivable (Long term) Cash 5300 58 27000 31-Dec Equipment Cash Notes Payable (Current) 4500 22500 31-Dec No Journal entry 31-Dec Cash 7000 as Common Stock Additional Paid In Capital 1100 5900 66 67 68 31-Dec Cash 15000 Notes Payable (Current) 15000 69 70 71 1300 31-Dec Intangibles Cash 1300

20000 方 石田 31-Dec Factory Buildings Cash Notes Payable (Non Current) 7500 12500 31-Dec Cash 3400 Equipment 3400 80 81 Cash Date No. Debit Credit Balance Accounts Receivable No. Date Debit 31-Dec Credit Balance 4900 31-Dec 84 85 7200 5300 4500 7000 15000 24000 16800 11500 7000 14000 29000 27700 20200 23600 1300 7500 3400 94 95 Notes Receivable (Long term) Date No. Debit Credit Balance No. Inventory Date 31-Dec Debit 96 97 Credit Balance 26000 31-Dec 1300 6600 5300

Short-term Investments Date No. Debit Credit Balance No. Equipment Date 31-Dec Debit Credit 31-Dec 2900 10100 Balance 56000 83000 79600 7200 27000 3400 100 101 102 103 104 105 106 107 108 109 110 111 112 Factory Building Date No. Debit Credit Balance No. Intangibles Date 31-Dec Debit Credit 31-Dec 104000 124000 Balance 4200 5500 20000 1300 Accounts Payable Date No. Debit Credit Cre Balance Notes Payable (current) Date Debit 31-Dec Credit 31-Dec 13000 Balance 6500 29000 44000 22500 15000 114 115 116 117 118 119 Accrued Liabilities Payable Date No. Debit Credit Balance Notes Payable (noncurrent) No. Date Debit Credit 31-Dec 12500 31-Dec 2900 Balance 41000 53500 120

Common Stock Date No. Debit Credit Balance Additional Paid In Capital No. Date Debit 31-Dec Credit 31-Dec 10400 11500 Balance 93600 99500 1100 5900 Retained Earnings Date 128 No. Debit Credit Balance 31-Dec 55900 130

132 133 134 135 136 Cedit 137 JAGUAR PLASTICS COMPANY Trial Balance December 31,2021 Debit 23600 4900 6600 26000 10100 79600 124000 5500 138 139 Account Title Cash Accounts Receivable Notes Receivable (Long term) Inventory Short-term Investments Equipment Factory Building Intangibles Accounts Payable Notes Payable (Current) Accrued Liabilities Payable Notes Payable (noncurrent) Common Stock Additional Paid in Capital Retained Earnings Total 140 141 142 143 144 145 147 148 13000 44000 2900 53500 11500 99500 55900 280300 149 150 151 280300 152

154 156 159 Assets Current Assets; Cash Short-term Investments Accounts Receivable Inventory Total Current Assets 160 13000 44000 2900 59900 161 162 JAGUAR PLASTICS COMPANY Balance Sheet December 31,2021 Liabilities Current Liabilities; 23600 Accounts Payable 10100 Notes Payable (Current) 4900 Accrued Liabilities Payable 26000 Total Current Liabilities 64600 Non-Current Liabilities Notes Payable (noncurrent) Total Liabilities 6600 79600 Stockholder's Equity 124000 Common Stock 5500 Additional Paid in Capital 215700 Retained Earnings Total Stockholder's Equity 280300 Total Liabilities and Stockholder's Equity 163 53500 113400 164 165 166 Non-Current Assets; Notes Receivable (Long term) Equipment Factory Building Intangibles Total Non-Current Assets 168 169 11500 99500 55900 166900 280300 170 171 172 Total Assets