televisions, and projectors. The following is Dell's (simplified) statement of financial position from a recent year: Assume

Question:

image text in transcribed

televisions, and projectors. The following is Dell's (simplified) statement of financial position from a recent year: image text in transcribed

Assume that the following transactions (in millions of dollars) occurred in the remainder of fiscal year 2010 (ending on February 2, 2010):

a. Issued additional shares for $\$ 200$ in cash.

b. Borrowed $\$ 30$ from banks; due in two years.

c. Purchased additional investments for $\$ 13,000$ cash; one-fifth were long term and the rest were short term.

d. Purchased property, plant, and equipment; paid $\$ 875$ in cash and $\$ 1,410$ with additional long-term bank loans.

e. Lent $\$ 250$ to associated companies that signed a six-month note.

f. Sold short-term investments costing $\$ 10,000$ for $\$ 10,000$ cash.
Required:
1) Prepare a journal entry for each transaction.
2) Create T-accounts for each item on the statement of financial position and include the January 30, 2009, balances. Post each journal entry to the appropriate T-accounts.
3) Prepare a statement of financial position for Dell based on the T-account ending balances at February 2, 2010 4) Compute Dell's debt-to-equity ratio for fiscal year 2010. What does this suggest about the company?