Injection Plastics Company has been operating for three years. At December 31, 2
ID: 2334673 • Letter: I
Question
Injection Plastics Company has been operating for three years. At December 31, 2017, the accounting records reflected the following Cash S 30.000 Intangibles $ 4,800 16,800 3,800 8,800 57,000 108,000 40,800 3,800 Accounts payable 4,800 Accrued liabilities Accounts receivable Inventories Notes receivable (long-term) Equipment Factory building 33,000 Short-term borrowings 2,800 Notes payable (long-term) 57,000 Contributed capital 99,000 Retained earnings During the year 2018, the following summarized transactions were completed a Purchased equipment that cost $21,600; paid $7,800 cash and signed a one-year note for the balance b. Issued 3,800 additional shares for $22,800 cash c. Lent $8,800 to a manager, who signed a two-year note d Purchased short-term investments for $10,800 in cash. e. Paid $6,800 on the note in transaction (a) f Borrowed $13,800 cash on December 31, 2018, from the bank and signed a note, payable June 30 2019 g Purchased a patent (an intangible asset) for $4,800 cash h. Built an addition to the factory for $30,400 paid $10.800 in cash and signed a three-year note for the balance i Hired a new president at the end of the year. The contract was for $94,000 per year plus options to j Returned defective equipment to the manufacturer, receiving a cash refund of $2,800 se company shares at a set price based on company performance Required: 1 & 2. Post the T-accounts for each of the accounts on the statement of financial position and enter the balances at the end of 2017 as beginning balances for 2018 Cash Beg ba Rea balExplanation / Answer
Letter F?
Answer: The Company has borrowed $13,800 cash on december 31, 2018 and a note payable has been signed by the company which is payable on June 30, 2019. The Journal entry for the same will be:
Cash $13,800
Notes Payable $13,800
And the Ledger posting will be:
Notes Payable Account:
Ledger Account of Cash:
e. $6,800 Beg. Bal $57,000 Clos. Bal. $97,400 a. $13,800 f. $13,800 h. $19,600 $1,04,200 $1,04,200