Required information 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 [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 $20,000 Accounts payable $19,000 Investments (short-term) 2,600 Accounts receivable 6,000 3,300 Accrued liabilities payable 3,600 Notes payable (current) 25,000 Notes payable (noncurrent) 1,500 Common stock Inventory 49,000 Notes receivable (long-term) 10, 200 Equipment Factory building 45,000 Additional paid-in capital 97,000 Retained earnings 4,800 91,800 21,600 Intangibles During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,800 cash. b. Lent $6,100 to a supplier who signed a two-year note. c. Purchased equipment that cost $22,000; paid $5,000 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 $79,000 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 1,300 shares of $0.50 par value common stock for $12,000 cash. f. Borrowed $19,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,700 cash. h. Built an addition to the factory for $27,000; paid $8,800 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,900. P2-3 Part 1 and 2 Required: 1. & 2. Post the current year transactions to T-accounts for each of the accounts on the balance sheet. (Two items have been given in the cash T-account as examples). Cash Investments (short-term) 3,300 Beg. Bal. 20,000 Beg. Bal. 8,800 (a) 6,100 (b) End. Bal. 3,300 End. Bal. 5,100 Accounts Receivable 3,600 Beg. Bal. Beg. Bal. End. Bal. 3,600 End. Bal. Notes Receivable (long-term) 1,500 Beg. Bal. Beg. Bal. End. Bal. 1,500 End. Bal. Factory Building 97,000 Beg. Bal. Beg. Bal. End. Bal. 97,000 End. Bal. Accounts Payable Beg. Bal. 19,000 Beg. Bal. End. Bal. 19,000 End. Bal. Notes payable (current) Beg. Bal. 6,000 Beg. Bal. End. Bal. 6,000 End. Bal. Common Stock Beg. Bal. 10,200 Beg. Bal. End. Bal. 10,200 End. Bal. Retained Earnings Beg. Bal. End. Bal. 0 21,600 21,600 Inventory 25,000 25,000 Equipment 45,000 45,000 Intangibles 4,800 4,800 Accrued Liabilities Payable 2,600 2,600 Notes payable (noncurrent) 49,000 49,000 Additional Paid-in Capital 91,800 91,800