Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are $ 35,000 5,000 40,000 5,000 2,000 ৪0,000 Cash Accounts Receivable Inventory Supplies Notes Receivable (due in three years) Equipment Buildings 120,000 Land Accounts Payable Notes Payable (due in three years) 30,000 37,000 Common Stock Retained Earnings ৪0, 000 150,000 50,000 During the year, the company had the following summarized activities: a. Purchased equipment that cost $21,000; paid $5,000 cash and signed a two-year note for the balance. b. Issued an additional 2,000 shares of common stock for $20,000 cash. c. Borrowed $50,000 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $4,000 cash. e. Built an addition to the factory buildings for $41,000; paid $12,000 in cash and signed a three-year note for the balance. f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked. 3. Summarize the journal entry effects from part 2 using T-accounts. TIP: Enter the December 31, balances as the month's beginning balances.

Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are $ 35,000 5,000 40,000 5,000 2,000 ৪0,000 Cash Accounts Receivable Inventory Supplies Notes Receivable (due in three years) Equipment Buildings 120,000 Land Accounts Payable Notes Payable (due in three years) 30,000 37,000 Common Stock Retained Earnings ৪0, 000 150,000 50,000 During the year, the company had the following summarized activities: a. Purchased equipment that cost $21,000; paid $5,000 cash and signed a two-year note for the balance. b. Issued an additional 2,000 shares of common stock for $20,000 cash. c. Borrowed $50,000 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $4,000 cash. e. Built an addition to the factory buildings for $41,000; paid $12,000 in cash and signed a three-year note for the balance. f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked. 3. Summarize the journal entry effects from part 2 using T-accounts. TIP: Enter the December 31, balances as the month's beginning balances.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter9: Accounting For Purchases And Cash Payments

Section: Chapter Questions

Problem 1AP

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