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MadisonElle
MadisonElle
11.02.2021 • 
Business

During the current year, the company had the following summarized activities: Purchased short-term investments for $8,000 cash.
Lent $6,300 to a supplier who signed a two-year note.
Purchased equipment that cost $24,000; paid $6,000 cash and signed a one-year note for the balance.
Hired a new president at the end of the year. The contract was for $95,000 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.
Issued an additional 3,000 shares of $0.50 par value common stock for $11,000 cash.
Borrowed $16,000 cash from a local bank, payable in three months.
Purchased a patent (an intangible asset) for $1,400 cash.
Built an addition to the factory for $21,000; paid $7,800 in cash and signed a three-year note for the balance.
Returned defective equipment to the manufacturer, receiving a cash refund of $2,100.
Assuming that the beginning balances in each of the accounts are zero, complete T-accounts to summarize the transactions in (a)–(g).

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