Performance Plastics Company (PPC) has been operating for three years. The December 31, 2015, account balances are:

Cash	$	42,750
Accounts Receivable		9,100
Inventory		51,000
Supplies		8,950
Notes Receivable (due 2018)		6,800
Equipment		120,000
Buildings		206,000
Land		44,250
Accounts Payable		55,500
Notes Payable (due 2019)		125,500
Common Stock		150,000
Retained Earnings		157,850

During the year 2016, the company had the following summarized activities:

a.

Purchased equipment that cost $33,700; paid $8,200 cash and signed a two-year note for the balance.

b.

Issued an additional 3,500 shares of common stock for $35,000 cash.

c.

Borrowed $51,000 cash from a local bank, payable June 30, 2018.

d.

Purchased supplies for $5,350 cash.

e.

Built an addition to the factory buildings for $57,500; paid $19,750 in cash and signed a three-year note for the balance.

f.

Hired a new president to start January 1, 2017. The contract was for $95,000 for each full year worked.

1.

Analyze transactions (a)(f) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.)

2.

Record the transaction effects determined in part 1 using journal entries.

3. Summarize the journal entry effects from part 2 using T-accounts. TIP: Enter the December 31, 2015, balances as the months beginning balances.

5.	Prepare a classified balance sheet at December 31, 2016.