Apple Inc., headquartered in Cupertino, California, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players and sells a variety of related software and services. The following is Apple's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September).

Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 26, 2015):
a. Borrowed $18,266 from banks due in two years.
b. Purchased additional investments for $21,000 cash; one-fifth were long term and the rest were short term.
c. Purchased property, plant, and equipment; paid $9,571 in cash and signed a short-term note for $1,410.
d. Issued additional shares of common stock for $1,469 in cash; total par value was $1 and the rest was in excess of par value.
e. Sold short-term investments costing $18,810 for $18,810 cash.
f. Declared $11,126 in dividends to be paid at the beginning of the next fiscal year.

Required:
1. Prepare a journal entry for each transaction. Use the account titles in the Apple balance sheet.
2. Create T-accounts for each balance sheet account and include the September 27, 2014, balances; create a new account Dividends Payable with a $0 beginning balance. Post each journal entry to the appropriate T-accounts.
3. Prepare a balance sheet from the T-account ending balances for Apple at September 26, 2015, based on these transactions.
4. Compute Apple's current ratio for the year ending on September 26, 2015. What does this suggest about the company?

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APPLE INC Consolidated Balance Sheet September 27, 2014 (dollars in millions) ASSET Current assets: S 13,844 11,233 17,460 2,111 23.883 68,531 130,162 20,624 12,522 $231,839 Cash Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments Property, plant, and equipment, net Other noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: s 30,196 18,453 8,491 6,308 63,448 28,987 27,857 120,292 Accounts payable Accrued expenses Unearned revenue Short-term notes payable Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Shareholders' equity Common stock ($0.00001 par value) Additional paid-in capital Retained earnings 23,312 88,234 111,547 $231,839 Total shareholders' equity Total liabilities and shareholders' equity