Assignment: Alyssa Plastic Company
Alyssa Plastic Company has been operating for three years. At December 31 of last year, the accounting records reflected the following:
|
Assets
|
Amount
|
Liabilities & Equity
|
Amount
|
|
Cash
|
$ 22,000
|
Accounts Payable
|
$ 15,000
|
|
Marketable Securities
|
3,000
|
Accrued Liabilities
|
4,000
|
|
Accounts Receivable
|
3,000
|
Notes Payable (Short Term)
|
7,000
|
|
Notes Receivable
|
1,000
|
Long-Term Notes Payable
|
47,000
|
|
Inventory
|
20,000
|
Common Stock
|
10,000
|
|
Equipment
|
50,000
|
Additional Paid-in Capital
|
80,000
|
|
Factory Building
|
90,000
|
Retained Earnings
|
31,000
|
|
Intangibles
|
5,000
|
|
|
|
Total Assets
|
$194,000
|
Total Liabilities & Equity
|
$194,000
|
During the current year, the company had the following summarized activities:
• Purchased marketable securities for $10,000 cash.
• Lent $5,000 to a supplier, who signed a two-year note.
• Purchased equipment that cost $18,000; paid $5,000 cash and signed a one-year note for the balance.
• Hired a new president at the end of the year. The contract was for $85,000 per year plus options to purchase company stock at a set price based on company performance.
• Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash.
• Borrowed $9,000 cash as a short-term note payable from a local bank.
• Purchased a patent for $3,000 cash.
• Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance.
• Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.
Required
• Create a journal entry for each transaction.
• Prepare a balance sheet as of December 31 of the current year.
• Analyze the financial status of the company over this last year. Develop financial ratios where possible to support your analysis.
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.