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 three years) Equipment Buildings Land Accounts Payable Notes Payable (due in three years) Common Stock 44,500 9,050 61,500 7,900 5,650 82,000 152,000 32,750 47,500 100,000 150,000 97,850 Retained Earnings During the year, the company had the following summarized activities: a. Purchased equipment that cost $25,350; paid $9.450 cash and signed a two-year note for the balance. b. Issued an additional 2,600 shares of common stock for $26,000 cash C. Borrowed $61,000 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $6.200 cash. addition to the factory buildings for $69750: paid $33.250 in cash and signed a three-year note for the balance. f Hired a new Dresident to start January 1 of next year. The contract was for $95,000 for each full year worked

Explanation / Answer

Date Account titles and explanation Debit Credit a Equipment $        25,350 Cash $          9,450 Notes Payable $        15,900 b Cash $        44,500 Common Stock $        44,500 c Cash $        61,000 Loan $        61,000 d Supplies $          6,200 Cash $          6,200 e Building $        69,750 Cash $        33,250 Notes Payable $        36,500 f No entry

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