Cougar Plastics Company has been operating for three years. At December 31, 2014, the accounting records...

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Accounting

Cougar Plastics Company has been operating for three years. AtDecember 31, 2014, the accounting records reflected thefollowing:

  Cash $ 22,000 Accounts payable $ 20,000
  Investments (short-term) 2,600 Accrued liabilities payable 2,800
  Accounts receivable 3,700 Notes payable (short-term) 6,800
  Inventory 28,000 Notes payable (long-term) 42,000
  Notes receivable (long-term) 2,700 Common stock 10,500
  Equipment 47,000 Additional paid-in capital 94,500
  Factory building 95,000 Retained earnings 28,500
  Intangibles 4,100

During the year 2015, the company had the following summarizedactivities:

a. Purchased short-term investments for $8,800 cash.
b. Lent $5,300 to a supplier who signed a two-year note.
c.
Purchased equipment that cost $20,000; paid $5,200 cash andsigned a one-year note for the balance.
d.
Hired a new president at the end of the year. The contract wasfor $79,000 per year plus options to purchase company stock at aset price based on company performance.
e. Issued an additional 2,200 shares of $0.50 par value commonstock for $18,000 cash.
f. Borrowed $17,000 cash from a local bank, payable in threemonths.
g.
Purchased a patent (an intangible asset) for $2,200 cash.
h.
Built an addition to the factory for $28,000; paid $7,700 incash and signed a three-year note for the balance.
i.
Returned defective equipment to the manufacturer, receiving acash refund of $1,500.
rev: 09_05_2014_QC_53105, 09_06_2014_QC_53105,10_06_2014_QC_55409
9.
value:
1.00 points
Required information
Required:
1. & 2.
Post the T-accounts for each of the accounts on the balancesheet and enter the balances at the end of 2014 as beginningbalances for 2015. (Two items have been given in the cash T-accountas examples).
References
eBook & Resources
Check my work
10.
value:
1.00 points
Required information
4. Prepare a trial balance at December 31, 2015.
References
eBook & Resources
Check my work
11.
value:
1.00 points
Required information
5.
Prepare a classified balance sheet at December 31, 2015.

rev: 09_05_2014_QC_53105, 09_06_2014_QC_53105
References
eBook & Resources
Check my work
12.
value:
1.00 points
Required information
6.
Compute the current ratio for 2015. (Round your answerto 2 decimal places.)
References
eBook & Resources

Answer & Explanation Solved by verified expert

4.4 Ratings (696 Votes)

Part1 and 2 Cash Beg 22000 e 18000 8800 a f 17000 5300 b i 1500 5200 c 2200 g 7700 h End 29300 Investments shortterm Beg 2600 a 8800 End 11400 Accounts Receivable Beg 3700 End 3700 Inventory Beg 28000 End 28000 Notes Receivable long term Beg 2700 b 5300 End 8000 Equipment Beg 47000 1500 i c 20000 End 65500 Factory building Beg 95000 h 28000 End 123000 Intangibles Beg 4100 g 2200 End 6300 Accounts payable 20000 Beg See Answer

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Cougar Plastics Company has been operating for three years. AtDecember 31, 2014, the accounting records reflected thefollowing: Cash$22,000Accounts payable$20,000 Investments (short-term)2,600Accrued liabilities payable2,800 Accounts receivable3,700Notes payable (short-term)6,800 Inventory28,000Notes payable (long-term)42,000 Notes receivable (long-term)2,700Common stock10,500 Equipment47,000Additional paid-in capital94,500 Factory building95,000Retained earnings28,500 Intangibles4,100During the year 2015, the company had the following summarizedactivities:a.Purchased short-term investments for $8,800 cash.b.Lent $5,300 to a supplier who signed a two-year note.c.Purchased equipment that cost $20,000; paid $5,200 cash andsigned a one-year note for the balance.d.Hired a new president at the end of the year. The contract wasfor $79,000 per year plus options to purchase company stock at aset price based on company performance.e.Issued an additional 2,200 shares of $0.50 par value commonstock for $18,000 cash.f.Borrowed $17,000 cash from a local bank, payable in threemonths.g.Purchased a patent (an intangible asset) for $2,200 cash.h.Built an addition to the factory for $28,000; paid $7,700 incash and signed a three-year note for the balance.i.Returned defective equipment to the manufacturer, receiving acash refund of $1,500.rev: 09_05_2014_QC_53105, 09_06_2014_QC_53105,10_06_2014_QC_554099.value:1.00 pointsRequired informationRequired:1. & 2.Post the T-accounts for each of the accounts on the balancesheet and enter the balances at the end of 2014 as beginningbalances for 2015. (Two items have been given in the cash T-accountas examples).ReferenceseBook & ResourcesCheck my work10.value:1.00 pointsRequired information4.Prepare a trial balance at December 31, 2015.ReferenceseBook & ResourcesCheck my work11.value:1.00 pointsRequired information5.Prepare a classified balance sheet at December 31, 2015. rev: 09_05_2014_QC_53105, 09_06_2014_QC_53105ReferenceseBook & ResourcesCheck my work12.value:1.00 pointsRequired information6.Compute the current ratio for 2015. (Round your answerto 2 decimal places.)ReferenceseBook & Resources


Cash	$	22,000	Accounts payable	$	20,000
Investments (short-term)		2,600	Accrued liabilities payable		2,800
Accounts receivable		3,700	Notes payable (short-term)		6,800
Inventory		28,000	Notes payable (long-term)		42,000
Notes receivable (long-term)		2,700	Common stock		10,500
Equipment		47,000	Additional paid-in capital		94,500
Factory building		95,000	Retained earnings		28,500
Intangibles		4,100

a.	Purchased short-term investments for $8,800 cash.
b.	Lent $5,300 to a supplier who signed a two-year note.
c.	Purchased equipment that cost $20,000; paid $5,200 cash andsigned a one-year note for the balance.
d.	Hired a new president at the end of the year. The contract wasfor $79,000 per year plus options to purchase company stock at aset price based on company performance.
e.	Issued an additional 2,200 shares of $0.50 par value commonstock for $18,000 cash.
f.	Borrowed $17,000 cash from a local bank, payable in threemonths.
g.	Purchased a patent (an intangible asset) for $2,200 cash.
h.	Built an addition to the factory for $28,000; paid $7,700 incash and signed a three-year note for the balance.
i.	Returned defective equipment to the manufacturer, receiving acash refund of $1,500.

6.	Compute the current ratio for 2015. (Round your answerto 2 decimal places.)