Required information Performance Plastics Company (PPC) has been operating for t
ID: 2332261 • Letter: R
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 Retained Earnings $44,500 9,050 61,500 7,900 5, 650 82,000 152,000 32,750 47,500 100,000 150,000 97,850 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. e. Built an addition to the factory buildings for $69,750: paid $33.250 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
Journal Entries Particular Amt(DR) Amt(CR) Equipment $ 25,350.00 To Cash $ 9,450.00 To Note Payable $ 15,900.00 (Being amount of Equipment Purchased by paying cash and balance in Note payable) Cash $ 26,000.00 To Common Stock $ 26,000.00 (Being issued new 2600 shares @ $10 per shares) Cash $ 61,000.00 To Note Payable $ 61,000.00 (Being amount borrowed from local bank by paying Note Payable for 2 years) Supplies $ 6,200.00 To Cash $ 6,200.00 (Being Supplies Purchased for cash) Factory Building $ 69,750.00 To Cash $ 33,250.00 To Note Payable $ 36,500.00 (Being amount of paid by cash and Note Payable for three years) No Entry (Contract for next year) Cash Particular Amt (DR) Amount (Cr) Balance Balance b/d $ 44,500.00 Equipment $ 9,450.00 $ 35,050.00 Common Stock $ 26,000.00 $ 61,050.00 Note Payable $ 61,000.00 $ 1,22,050.00 Supplies $ 6,200.00 $ 1,15,850.00 Factory Building $ 33,250.00 $ 82,600.00 Note Payable-Due in 3 years Particular Amt (DR) Amount (Cr) Balance Bal B/d $ 1,00,000.00 Factory Building $ 36,500.00 $ 1,36,500.00 Note Payable-Due in 2 years Particular Amt (DR) Amount (Cr) Balance Office Equipment $ 15,900.00 $ 15,900.00 Cash $ 61,000.00 $ 76,900.00 Office Equipment Particular Amt (DR) Amount (Cr) Balance Bal B/d $ 82,000.00 $ 82,000.00 Cash $ 9,450.00 $ 91,450.00 Note Payable $ 15,900.00 $ 1,07,350.00 Office Supplies Particular Amt (DR) Amount (Cr) Balance Bal B/d $ 7,900.00 Cash $ 6,200.00 $ 14,100.00 Common Stock Particular Amt (DR) Amount (Cr) Balance To Balance B/d $ 1,50,000.00 Cash $ 26,000.00 $ 1,76,000.00 Inventory Particular Amt (DR) Amount (Cr) Balance Bal B/d $ 61,500.00 Accounts Receivable Particular Amt (DR) Amount (Cr) Balance Bal B/d $ 9,050.00 Building Particular Amt (DR) Amount (Cr) Balance Bal B/d $ 1,52,000.00 Cash $ 33,250.00 $ 1,85,250.00 Note Payable $ 36,500.00 $ 2,21,750.00 Land Particular Amt (DR) Amount (Cr) Balance Bal B/d $ 32,750.00 Accounts Payable Particular Amt (DR) Amount (Cr) Balance Bal B/d $ 47,500.00 Retained Earnings Particular Amt (DR) Amount (Cr) Balance Bal B/d $ 97,850.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.