Required information Performance Plastics Company (PPC) has been operating for t

Question

Required information Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are Cash Accounts Receivable Inventory Supplies Notes Receivable (due in threey Equipment Buildings Land Accounts Payable Notes Payable (due in three years) Common Stock Retained Earnings 41,250 8,850 63,000 8,750 6,050 115,500 197,000 42,500 37,500 127,000 150,000 168,400 ears) During the year, the company had the following summarized activities: a. Purchased equipment that cost $24,300; paid $8,000 cash and signed a two-year note for the balance b. Issued an additional 3,300 shares of common stock for $33,000 cash. C. Borrowed $98,500 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $6,700 cash. e. Built an addition to the factory buildings for $45,250; paid $15,000 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.

Explanation / Answer

T-Accounts: Cash A/c OB 41250 Equipment 8000 CS 33000 supplies 6700 NP loan 98500 Building 15000 CB 143050 AR a/c OB 8850 Inventory a/c OB 63000 Supplies a/c OB 8750 CB 15450 cash 6700 Notes Receivable a/c OB 6050 Equipment a/c OB 115500 CB 139800 cash 8000 NP 16300 Buildings a/c OB 197000 CB 242250 cash 15000 NP 30250 Land a/c OB 42500 AP a/c OB 37500 NP a/c CB 272050 OB 127000 Equipment 16300 cash 98500 Building 30250 Common Stock a/c CB 183000 OB 150000 cash 33000 RE a/c OB 168400 5) BALANCE SHEET : LIABILITIES & SH EQ. AMOUNT $ ASSETS AMOUNT $ AP 37500 cash 143050 NP 272050 accts rece 8850 Current liabilities: 309550 inven 63000 SH Eq.: supplies 15450 CS 183000 Current Assets: 230350 RE 168400 NR 6050 Equipment 139800 Buildings 242250    Land 42500 Total Liabilities & SH Eq. 660950 Total Assets 660950 Answer 6) Through Liabilities

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.