Required information [The following information applies to the questions displayed below.] Cougar Plastics Company has b

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Required Information The Following Information Applies To The Questions Displayed Below Cougar Plastics Company Has B 1 (38.8 KiB) Viewed 10 times

Required information [The following information applies to the questions displayed below.] Cougar Plastics Company has been operating for three years. At December 31, 2014, the accounting records reflected the following: 19,000 Cash $23,000 Accounts payable $ Investments (short-term) 4,000 3,500 Accrued liabilities payable Notes payable (short- Accounts receivable 4,800 5.300 term) 47,000 Inventory 26,000 Notes payable (long-term) Notes receivable (long- 10,700 2,000 Common stock term) 96,300 Equipment 53,000 Additional paid-in capital 43,300 Factory building 108,000 Retained earnings Intangibles 4,300 During the year 2015, the company had the following summarized activities:
During the year 2015, the company had the following summarized activities: a. Purchased short-term investments for $7,100 cash. b. Lent $5,200 to a supplier who signed a two-year note. c. Purchased equipment that cost $18,000; paid $5,200 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 $94,000 per year plus options to purchase company stock at a set price based on company performance. e. Issued an additional 1,500 shares of $0.50 par value common stock for $18,000 cash. f. Borrowed $15,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,200 cash. h. Built an addition to the factory for $26,000; paid $8,900 in cash and signed a three- year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,900.
Required: 1. & 2. Post the T-accounts for each of the accounts on the balance sheet and enter the balances at the end of 2014 as beginning balances for 2015. (Two items have been given in the cash T-account as examples). Cash Investments (short-term) Beg. Bal. 23,000 Beg. Bal. 4,000 7,100 (a) 5,200 (b) End. Bal. 4,000 End. Bal. 10,700 Accounts Receivable Beg. Bal. Inventory 26,000 4,800 Beg. Bal. End. Bal. 4,800 End. Bal. 26,000
Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Notes Receivable (long-term) 2,000 2,000 Factory Building 108,000 108,000 Accounts Payable 19,000 19,000 Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Equipment 53,000 53,000 Intangibles 4,300 4,300 Accrued Liabilities Payable 3,500 3,500
Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Notes Payable (short-term) 5,300 5,300 Common Stock 10,700 10,700 Retained Earnings 43,300 0 43,300 Beg. Bal. End. Bal. Beg. Bal. End. Bal. Long-Term Notes Payable 47,000 47,000 Additional Paid-in Capital 96,300 96,300