Aguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following:

Cash	$	27,000		Accounts payable	$	23,000
Investments (short-term)		2,300		Accrued liabilities payable		3,200
Accounts receivable		3,300		Notes payable (current)		7,700
Inventory		33,000		Notes payable (noncurrent)		47,000
Notes receivable (long-term)		1,600		Common stock		10,500
Equipment		55,000		Additional paid-in capital		94,500
Factory building		90,000		Retained earnings		31,300
Intangibles		5,000

During the current year, the company had the following summarized activities:

Purchased short-term investments for $8,200 cash.

Lent $6,300 to a supplier who signed a two-year note.

Purchased equipment that cost $19,000; paid $4,500 cash and signed a one-year note for the balance.

Hired a new president at the end of the year. The contract was for $76,000 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.

Issued an additional 2,500 shares of $0.50 par value common stock for $14,000 cash.

Borrowed $12,000 cash from a local bank, payable in three months.

Purchased a patent (an intangible asset) for $2,500 cash.

Built an addition to the factory for $30,000; paid $7,900 in cash and signed a three-year note for the balance.

Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.

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P2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 (GL) 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 $27,000 Accounts payable 2,300 Accrued liabilities payable. 3,300 Notes payable (current) 33,000 Notes payable (noncurrent) Common stock 1,600 55,000 Additional paid-in capital 90,000 Retained earnings. 5,000 During the current year, the company had the following summarized activities: $23,000 3,200 7,700 47,000 10,500 94,500 31,300 a. Purchased short-term investments for $8,200 cash. b. Lent $6,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $19,000; 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 $76,000 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 2,500 shares of $0.50 par value common stock for $14,000 cash. f. Borrowed $12,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,500 cash. h. Built an addition to the factory for $30,000; paid $7,900 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000. P2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 (GL) 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 $27,000 Accounts payable 2,300 Accrued liabilities payable. 3,300 Notes payable (current) 33,000 Notes payable (noncurrent) Common stock 1,600 55,000 Additional paid-in capital 90,000 Retained earnings. 5,000 During the current year, the company had the following summarized activities: $23,000 3,200 7,700 47,000 10,500 94,500 31,300 a. Purchased short-term investments for $8,200 cash. b. Lent $6,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $19,000; 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 $76,000 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 2,500 shares of $0.50 par value common stock for $14,000 cash. f. Borrowed $12,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $2,500 cash. h. Built an addition to the factory for $30,000; paid $7,900 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.

Answer rating: 100% (QA)

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