Assignment: Financial Accounting

profilemcyrayvahgr
Copyofcf_Unit1_P2-3.xlsx
Home>Business & Finance homework help>Accounting homework help>Assignment: Financial Accounting

P2-3

P2-3 Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5
Cougar Plastics Company has been operating for three years. At December 31, 2014, the accounting records reflected the following:
  Cash $ 22,000 Accounts payable $ 15,000
  Investments (short-term) 3,000 Accrued liabilities payable 4,000
  Accounts receivable 3,000 Notes payable (short-term) 7,000
  Inventory 20,000 Long-term notes payable 47,000
  Notes receivable (long-term) 1,000 Common stock 10,000
  Equipment 50,000 Additional paid-in capital 80,000
  Factory building 90,000 Retained earnings 31,000
  Intangibles 5,000
During the year 2015, the company had the following summarized activities:
a. Purchased short-term investments for $10,000 cash.
b. Lent $5,000 to a supplier who signed a two-year note.
c. Purchased equipment that cost $18,000; 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 $85,000 per year plus options to purchase company stock at a set price based on company performance.
e. Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash.
f. Borrowed $9,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $3,000 cash.
h. Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.
Required:
1. & 2. Record each necessary entry for the events in 2015 in T-accounts (including referencing) and determine the ending balances. The balances at the end of
2014 have been entered as beginning balances for 2015.
(Transaction (a) has been completed in the T-accounts as an example.)
Cash Investments (short-term)
Beg. Bal. 22,000 Beg. Bal. 3,000
10,000 (a) (a) 10,000
End. Bal. 13,000
End. Bal. 12,000
Accounts Receivable Inventory
Beg. Bal. 3,000 Beg. Bal. 20,000
End. Bal. 3,000 End. Bal. 20,000
Notes Receivable (long-term) Equipment
Beg. Bal. 1,000 Beg. Bal. 50,000
End. Bal. 1,000 End. Bal. 50,000
Factory Building Intangibles
Beg. Bal. 90,000 Beg. Bal. 5,000
End. Bal. 90,000 End. Bal. 5,000
Accounts Payable Accrued Liabilities Payable
Beg. Bal. 15,000 Beg. Bal. 4,000
End. Bal. 15,000 End. Bal. 4,000
Notes Payable (short-term) Long-Term Notes Payable
Beg. Bal. 7,000 Beg. Bal. 47,000
End. Bal. 7,000 End. Bal. 47,000
Common Stock Additional Paid-in Capital
Beg. Bal. 10,000 Beg. Bal. 80,000
End. Bal. 10,000 End. Bal. 80,000
Retained Earnings
Beg. Bal. 31,000
End. Bal. 31,000
Required:
4 Prepare a trial balance at December 31, 2015.
COUGAR PLASTICS COMPANY
Trial Balance
At December 31, 2015
Account Titles Debit Credit
Cash
Investments (short-term)
Accounts receivable
Inventory
Notes receivable (long-term)
Equipment
Factory building
Intangibles
Accounts payable
Accrued liabilities payable
Notes payable (short-term)
Notes payable (long-term)
Common stock
Additional paid-in capital
Retained earnings
Totals $ - $ -
Required:
5 Prepare a classified balance sheet at December 31, 2015.
COUGAR PLASTICS COMPANY
Balance Sheet
At December 31, 2015
Assets Liabilities
Current assets: Current liabilities:
Total current liabilities -
Total current assets -
Non-current assets:
Total liabilities -
Stockholders' Equity
Total non-current assets - Total stockholders' equity -
Total assets $ - Total liabilities and stockholders' equity $ -
Required:
6 Compute the current ratio for 2015. (Round your answer to 2 decimal places.)
Current ratio

P2-3 Check Figures

P2-3 Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5
Cougar Plastics Company has been operating for three years. At December 31, 2014, the accounting records reflected the following:
  Cash $ 22,000 Accounts payable $ 15,000
  Investments (short-term) 3,000 Accrued liabilities payable 4,000
  Accounts receivable 3,000 Notes payable (short-term) 7,000
  Inventory 20,000 Long-term notes payable 47,000
  Notes receivable (long-term) 1,000 Common stock 10,000
  Equipment 50,000 Additional paid-in capital 80,000
  Factory building 90,000 Retained earnings 31,000
  Intangibles 5,000
During the year 2015, the company had the following summarized activities:
a. Purchased short-term investments for $10,000 cash.
b. Lent $5,000 to a supplier who signed a two-year note.
c. Purchased equipment that cost $18,000; 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 $85,000 per year plus options to purchase company stock at a set price based on company performance.
e. Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash.
f. Borrowed $9,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $3,000 cash.
h. Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.
Required:
1. & 2. Record each necessary entry for the events in 2015 in T-accounts (including referencing) and determine the ending balances. The balances at the end of
2014 have been entered as beginning balances for 2015.
(Transaction (a) has been completed in the T-accounts as an example.)
Cash Investments (short-term)
Beg. Bal. 22,000 Beg. Bal. 3,000
10,000 (a) (a) 10,000
3,000 (g) End. Bal.
End. Bal.
Accounts Receivable Inventory
Beg. Bal. 3,000 Beg. Bal. 20,000
End. Bal. End. Bal.
Notes Receivable (long-term) Equipment
Beg. Bal. 1,000 Beg. Bal. 50,000
End. Bal. End. Bal.
Factory Building Intangibles
Beg. Bal. 90,000 Beg. Bal. 5,000
(g) 3,000
End. Bal. End. Bal.
Accounts Payable Accrued Liabilities Payable
Beg. Bal. 15,000 Beg. Bal. 4,000
End. Bal. End. Bal.
Notes Payable (short-term) Long-Term Notes Payable
Beg. Bal. 7,000 Beg. Bal. 47,000
End. Bal. End. Bal.
Common Stock Additional Paid-in Capital
Beg. Bal. 10,000 Beg. Bal. 80,000
End. Bal. End. Bal.
Retained Earnings
Beg. Bal. 31,000
End. Bal.
Required:
4 Prepare a trial balance at December 31, 2015.
COUGAR PLASTICS COMPANY
Trial Balance
At December 31, 2015
Account Titles Debit Credit
Cash
Investments (short-term)
Accounts receivable
Inventory
Notes receivable (long-term)
Equipment
Factory building
Intangibles
Accounts payable
Accrued liabilities payable
Notes payable (short-term)
Notes payable (long-term)
Common stock
Additional paid-in capital
Retained earnings
Totals $243,000 $0
Required:
5 Prepare a classified balance sheet at December 31, 2015.
COUGAR PLASTICS COMPANY
Balance Sheet
At December 31, 2015
Assets Liabilities
Current assets: Current liabilities:
Total current liabilities - 0
Total current assets - 0
Non-current assets:
Total liabilities 0
Stockholders' Equity
Total non-current assets - 0 Total stockholders' equity - 0
Total assets $ - 0 Total liabilities and stockholders' equity $ - 0
Required:
6 Compute the current ratio for 2015. (Round your answer to 2 decimal places.)
Current ratio

Sheet6

V1 Y1
(a) Accounts payable
(b) Accounts receivable
(c) Accrued liabilities payable
(d) Additional paid-in capital
(e) Cash
(f) Common stock
(g) Dividends payable
(h) Equipment
(i) Factory building
Intangibles
Inventory
Investments
Land
Long-term debt
Long-term investments
Long-term notes payable
Mortgage notes payable
Notes payable (long-term)
Notes payable (short-term)
Notes receivable (long-term)
Notes receivable (short-term)
Other current assets
Other Noncurrent Assets
Other stockholders' equity items
Retained earnings
Store fixtures