The financial statements of Apple Inc. are presented in Appendix A.

Instructions

a. Using the consolidated income statement and balance sheet, identify items that may result in adjusting entries for deferrals.

b. Using the consolidated income statement, identify two items that may result in adjusting entries for accruals.

c. What was the cash paid for income taxes during 2020 , reported at the bottom of the consolidated statement of cash flows? What was income tax expense (provision for income taxes) for 2020?

Data from Appendix A

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Net sales: Products Services Total net sales Cost of sales: Products Services Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Total cost of sales Gross margin Years ended September 26, September 28, September 29, 2020 2019 2018 $ 220,747 53,768 274,515 151,286 18,273 169,559 104,956 $ 213,883 46,291 260,174 144,996 16,786 161,782 98,392 $ 225,847 39,748 265,595 148,164 15,592 163,756 101,839