Intangible assets
4,400
Check my work
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,400 cash.
b. Lent $6,000 to a supplier, who signed a two-year note.
c. Leased equipment that cost $27,000; paid $4,400 cash and signed a five-year right-of-use lease for
the balance.
d. Hired a new president at the end of the year. The contract was for $89,000 per year plus options to
purchase company stock at a set price based on company performance. The new president begins
her position on January 1 of next year.
e. Issued an additional 1,100 shares of $0.50 par value common stock for $17,000 cash.
f. Borrowed $18,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $2,700 cash.
h. Built an addition to the factory for $29,000; paid $8,700 in cash and signed a three-year note for
the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $2,500.
Required:
4. Prepare a trial balance at December 31 of the current year.
JAGUAR PLASTICS COMPANY
Trial Balance
At December 31
Account Titles
Debit
Credit
Cash
37 500
