AP2-5 Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing a Statement of Financial Position, and Evaluating the Current Ratio (@P2.5) LO2-5, 2-6 BCE Inc. Xcel BCE Inc., Canada's largest communications company, provides a comprehensive and innovative suite of broadband communications and content services to consumer, residential, business, and government customers in Canada. The following is BCE's (simplified) statement of financial position from a recent year: Page 10 BCE INC. Statement of Financial Position At December 31, 2018 (in millions of Canadian dollars) ASSETS Current assets Cash $ 425 Trade and other receivables 3,006 Inventory 432 Prepaid expenses 244 Other current assets 1,686 Total current assets 5,793 Non-current assets Property, plant, and equipment, net 24,844 Long-term investments 798 Intangible assets 13,205 Goodwill 10,658 Other non-current assets 1.802 $57,100 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade payables and other liabilities $ 3.941 Interest payable 196 Current tax liabilities 253 Dividends payable 691 Debt due within one year 4,645 703 Other current liabilities Total current liabilities 10,429 Non-current liabilities Long-term debt 19,760 Other non-current liabilities 6,222 Total liabilities 36,411 Shareholders' equity 20.689 Total liabilities and shareholders' equity $57,100 Source: BCE Inc., Annual Report 2018, : Assume that the following transactions in millions of dollars) occurred in fiscal year 2019 (ended on December 31, 2019): a. Issued additional shares for $200 in cash. b. Borrowed 6,300 from creditors, due in 10 years. c. Purchased additional investments for $1,500 cash; one-fifth were long-term and the rest were short-term. d. Purchased property, plant, and equipment; paid $4,650 in cash and $850 with additional long-term bank loans. e. Lent $250 to associated companies that signed a six-month note. f. Sold short-term investments costing $200 for $200 cash. Required: 1. Prepare a journal entry for each transaction. 2. Create a T-account for each item on the statement of financial position and include the December 31, 2019 balances. Post each journal entry to the appropriate T-account. 3. Prepare a trial balance as at December 31, 2019. 4. Prepare a statement of financial position for BCE based on the T-account ending balances at December 31, 2019. 5. Compute BCE's current ratio for fiscal year 2019. What does this suggest about the company