2 P2-5 (Algo) Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 [The following information applies to the questions displayed below) Mango 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 Mango's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September Part 2014 . DO Hutan $ 14,674 11,417 17,743 2,141 24,220 69,595 132,164 20,946 12,720 $ 235,465 MANGO INC CONSOLIDATED BALANCE SHEET September 30, 2017 (dollars in millions) ASSETS Current assets! 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: Accounts payable Accrued expenses Unearned revenue Short-term notes payable Total current liabilities Long-ter debt Other noncurrent liabilities Total liabilities Stockholders' equity: Connon stock (50.0001 per value) Additional paid-in capital Retained earning Total stockholders equity Total liabilities and shareholders' equity $ 30,666 18,743 8,629 6,407 64,447 29,445 28,292 122,184 1 25,612 87,646 113,259 $235,463 Total stockholders' equity Total liabilities and shareholders' equity 113,259 $235,443 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): a. Borrowed $18,306 from banks due in two years, b. Purchased additional investments for $24,800 cash; one-fifth were long term and the rest were short term c. Purchased property, plant, and equipment; paid $9,612 in cash and signed a short-term note for $1,451. d. Issued additional shares of common stock for $1,510 in cash; total par value was $1 and the rest was in excess of par value e Sold short-term investments costing $19,047 for $19,047 cash. 1. Declared $11,166 In dividends to be paid at the beginning of the next fiscal year. P2-5 Part 2 2. Post each transaction to the appropriate T-accounts (Enter your answers in millions.) Beg. Bal (b) Cash 14,074 18,306 1,510 19,047 Short-term Investments 11,417 19,840 19,047) 7 Beg. Bal (a) (d) (e) 24,800 (b) 9,612 (c) End. Bal 12,210 End, Bal 18,525 Accounts Receivable 17,743 Inventories 2,141 Bog. Bal Beg. Bal. Required information 14 Bog. Bar (a) (d) (0) Cash 14,074 18,306 1,510 19,047 Short-term Investments 11,417 19,840 19.047 (0) Beg Bal f(b) 24,800 (b) 9,612 [() End, Bal 12,210 End. Bai 18,525 Accounts Receivable 17,743 Inventories 2.141 Beg Bal Bog. Bal ces End Bal 17,743 End. Bal 2.141 Other Current Assets Beg Bal 24.220 Bog. Bal (b) Long-term Investments 132,184 4,960 132.184 End. Bal 24,220 End. Bal 4,960 Property. Plant, and Equipment 20,944 Other Noncurrent Assets 12,720 Beg Bal Beg Bal End. Bal 20,944 End. Bal. 12.720 Accounts Payable Accrued Expenses 14 Accounts Payable 30,668 Beg. Bal. Accrued Expenses 18,743 Beg. Bal. End. Bal. 30,668 End. Bal. 18,743 sk Unearned Revenue 8,629 Beg Bal Short-term Notes Payable 6,407 Beg. Bal. 1 nces End. Bal 8,629 End. Bal. 6,407 Dividends Payable Long-term Debt 29,445 Beg. Bal Beg. Bal End. Bal. 0 End. Bal. 29,445 Common Stock Other Noncurrent Liabilities 28,292 Beg. Bal. Beg. Bal. End, Bal. 28,292 End. Bal. End. Bal. 0 End. Bal. 29,445 Common Stock Other Noncurrent Liabilities 28,292 Beg. Bal. Beg. Bal 1 End. Bal. 28,292 End. Bal. Additional Paid-in Capital 25,612 Retained Earnings 87,646 Beg. Bal. Beg. Bal. End. Bal. 25,612 End. Bal. 87,646