Required information [The following information applies to the questions displayed below.] 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) $26,000 Accounts payable $14,000 Accrued liabilities 2,600 3,600 payable Accounts receivable 4,200 Notes payable (current) 6,200 Inventory 24,000 Notes payable (noncurrent) 48,000 Notes receivable (long- Long-term lease 2,900 65,000 term) liabilities Equipment 48,000 Common stock 10,100 Factory building 92,000 Additional paid-in 90,900 capital Operating lease right-of-135,000 use assets Retained earnings 100,900 Intangible assets 4,000 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,200 cash. b. Lent $5,800 to a supplier, who signed a two-year note. c. Leased equipment that cost $19,000; paid $5,500 cash and signed a five-year right-of-use lease for the balance. d. Hired a new president at the end of the year. The contract was for $77,000 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 1,100 shares of $0.50 par value common stock for $19,000 cash. f. Borrowed $12,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,400 cash. h. Built an addition to the factory for $28,000; 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 $1,800. Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet.
Required information [The following information applies to the questions displayed below.] 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) $26,000 Accounts payable $14,000 Accrued liabilities 2,600 3,600 payable Accounts receivable 4,200 Notes payable (current) 6,200 Inventory 24,000 Notes payable (noncurrent) 48,000 Notes receivable (long- Long-term lease 2,900 65,000 term) liabilities Equipment 48,000 Common stock 10,100 Factory building 92,000 Additional paid-in 90,900 capital Operating lease right-of-135,000 use assets Retained earnings 100,900 Intangible assets 4,000 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,200 cash. b. Lent $5,800 to a supplier, who signed a two-year note. c. Leased equipment that cost $19,000; paid $5,500 cash and signed a five-year right-of-use lease for the balance. d. Hired a new president at the end of the year. The contract was for $77,000 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 1,100 shares of $0.50 par value common stock for $19,000 cash. f. Borrowed $12,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,400 cash. h. Built an addition to the factory for $28,000; 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 $1,800. Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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