alyssa plastic company quiz accounting

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.