P$2-3($Algo$)$ Recording Transactions in T$-$Accounts, Preparing a Statement of Financial Position from a Trial Balance, and Evaluating the Current Ratio LO$2-4,2-6$

Injection Plastics Company has been operating for three years. At December $31,2023,$ the accounting records reflected the following:

Cash $ $31,000$ Intangibles $ $5,000$

Investments $($short$-$term$)4,000$ Accounts payable $17,000$

Accounts receivable $5,000$ Accrued liabilities $4,000$

Inventories $34,000$ Short$-$term borrowings $9,000$

Notes receivable $($long$-$term$)3,000$ Notes payable $($long$-$term$)58,000$

Equipment $58,000$ Contributed capital $110,000$

Factory building $100,000$ Retained earnings $42,000$

During the year $2024,$ the following summarized transactions were completed:

Purchased equipment that cost $$22,000$; paid $$8,000$ cash and signed a one$-$year note for the balance.

Issued $4,000$ additional shares for $$24,000$ cash.

Lent $$9,000$ to a manager, who signed a two$-$year note.

Purchased short$-$term investments for $$11,000$ in cash.

Paid $$7,000$ on the note in transaction $($a$).$

Borrowed $$14,000$ cash on December $31,2024,$ from the bank and signed a note, payable June $30,2025.$

Purchased a patent $($an intangible asset$)$ for $$5,000$ cash.

Built an addition to the factory for $$31,000$; paid $$11,000$ in cash and signed a three$-$year note for the balance.

Hired a new president at the end of the year. The contract was for $$95,000$ per year plus options to purchase company shares at a set price based on company performance.

Returned defective equipment to the manufacturer, receiving a cash refund of $$3,000.$

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 $2023$ as beginning balances for $2024.$

$3.$ This part of the question is not part of your Connect assignment.

$4.$ Prepare a trial balance at December $31,2024.$

$5.$ Prepare a classified statement of financial position at December $31,2024.$

$6.$ Compute the current ratio at December $31,2024.($Round the final answer to $2$ decimal places.$)$

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