Refer to the Canadian Tire financial statements in Appendix A at the back of the book. Assume that Canadian Tire completed the following selected transactions during its 2014 fiscal year (all amounts in millions).

a. Sold goods on account, $3,101.

b. Sold goods for cash, $9,361.9.

c. Collected trade accounts receivable, $2,979.3.

d. Paid cash for inventory, $7,695.9.

e. Sold inventory that cost $7,553.1. Debit "Cost of producing revenue."

f. Purchased TV advertising on account, $4,055.

g. Paid trade accounts payable, $3,911.2.

h. Repaid long-term debt, $207.5.

i. Purchased property and equipment for cash, $227.

Requirements

1. For the following items, set up T-accounts with the given opening balances (note that the debits do not equal the credits because this is only a subset of Canadian Tire's accounts):

• Cash and Cash Equivalents, debit balance of $643.2

• Trade and Other Receivables, debit balance of $758.5

• Merchandise Inventories, debit balance of $1,481.0

• Property and Equipment, debit balance of $3,516.1

• Trade and Other Payables, credit balance of $1,817.4

• Long-Term Debt, credit balance of $2,339.1

• Revenue, balance of $0

• Selling, General and Administrative Expenses, balance of $0.

2. Record Canadian Tire's transactions (a) through (i) in the journal. Explanations are not required.

3. Post the transactions in part (2) to the T-accounts (key them by letter) and compute the balance in each account.

4. For each of the following accounts, compare your balance to the actual balance in Canadian Tire's financial statements in Appendix A. Your balances should agree with the actual balances.

a. Long-Term Debt

b. Trade and Other Receivables

c. Merchandise Inventories

d. Trade and Other Payables

e. Revenue

f. Property and Equipment?