Alyssa Plastic Company
Mskimmi01 
Quiz1AlyssaPlastic.docxQuiz 1 Alyssa Plastic
Alyssa Plastic Company has been operating for three years. At December 31 of last year, the accounting records reflected the following:
|
Assets |
Amount |
Liabilities & Equity |
Amount |
|
Cash |
$ 22,000 |
Accounts Payable |
$ 15,000 |
|
Marketable Securities |
3,000 |
Accrued Liabilities |
4,000 |
|
Accounts Receivable |
3,000 |
Notes Payable (Short Term) |
7,000 |
|
Notes Receivable |
1,000 |
Long-Term Notes Payable |
47,000 |
|
Inventory |
20,000 |
Common Stock |
10,000 |
|
Equipment |
50,000 |
Additional Paid-in Capital |
80,000 |
|
Factory Building |
90,000 |
Retained Earnings |
31,000 |
|
Intangibles |
5,000 |
|
|
|
Total Assets |
$194,000 |
Total Liabilities & Equity |
$194,000 |
During the current year, the company had the following summarized activities:
a. Purchased marketable securities 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 as a short-term note payable from a local bank.
g. Purchased a patent 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. Create a journal entry for each transaction.
2. Prepare a balance sheet as of December 31 of the current year.
