Bayer AG, with headquarters in Leverkusen, Germany, is an international, research-based group of companies active in health care, nutrition, and high-tech materials. Popular products include ASPIRIN, Alka-Seltzer, and One-A-Day vitamins. The following is Bayers (simplified) statement of financial position as at September 30, 2012:

BAYER AG Statement of Financial Position At September 30, 2012 (in millions of euros)
Assets:
Current assets
Cash and cash equivalents		3,181
Receivables		8,644
Inventories		6,539
Other assets		1,514
		19,878
Non-current assets:
Investments		319
Property, plant, and equipment		9,480
Intangible assets		19,477
Other assets		2,767
		32,043
Total assets		51,921
Liabilities and Shareholders Equity
Current liabilities:
Trade accounts payable		3,397
Financial liabilities		3,721
Provisions		4,593
Other short-term liabilities		1,502
		13,213
Non-current liabilities:
Provisions		7,524
Deferred income taxes		2,401
Financial liabilities		7,521
Other liabilities		2,254
		19,700
Shareholders equity:
Contributed capital		8,284
Retained earnings		10,724
		19,008
Total liabilities and shareholders equity		51,921

Assume that the following transactions occurred in the last quarter of 2012:

a.	Issued additional shares for 60 in cash.
b.	Borrowed 615 from banks due in two years.
c.	Declared and paid 1,160 in dividends to shareholders.
d.	Purchased additional intangibles for 64 cash.
e.	Purchased property, plant, and equipment; paid 1,514 in cash and 5,410 with additional long-term bank loans.
f.	Acquired additional investments; paid 623 in cash.
g.	Lent 125 to an associated company that signed a six-month note.
h.	Sold investments costing 461 for the same amount in cash.

Required:
1.	Prepare a journal entry for each transaction.

2.Post the above entries in the below T-accounts for each financial statement account and include the September 30, 2012, balances. Post each journal entry to the appropriate T-accounts.(Enter your answers in millions.)

3.	Prepare a statement of financial position for Bayer based on the T-account ending balances at December 31, 2012.

4-a	Compute Bayers current ratio at December 31, 2012.(Round your answer to 2 decimal places.)

The following are the summary account balances from a recent statement of financial position of Modern Sportswear Inc. The accounts are followed by a list of transactions for the month of January 2015. All amounts are shown in millions of dollars:

Cash	$	645		Trade payables	$	1,852
Long-term borrowings		2,279		Income tax payable		320
Trade receivables		1,533		Prepayments		18
Inventories		571		Retained earnings		4,408
Deferred income taxes (credit)		2,568		Other non-current assets		1,156
Property and equipment, net		11,009		Share capital		3,505

The accounts have normal debit or credit balances, but they are not necessarily listed in good order.

The following additional information is also available:

a.	Purchased new equipment costing $170 by issuing long-term debt.
b.	Received $920 on trade receivables.
c.	Received and paid the telephone bills for $1.
d.	Earned $530 in sales to customers on account; the cost of sales was $310.
e.	Paid employees $110 for wages earned in January.
f.	Paid half of the income taxes payable.
g.	Purchased inventory for $253 on account.
h.	Prepaid rent for February for a warehouse for $14.
i.	Paid $12 of long-term borrowings and $3 in interest on the debt.
j.	Purchased a patent (an intangible asset) for $10 cash.

Required:
1&2.	Post the above transactions in to the appropriate T-accounts.(Enter your answers in millions.)

3.	Show the effects of each transaction on net earnings and cash.(Enter any decreases to account balances with a minus sign. Enter your answers in millions.)

4-a.	Prepare a statement of earnings for the month of January 2015.(Enter your answers in millions.)

4-b.	Prepare a classified statement of financial position as at January 31, 2015.(Enter your answers in millions.)

5.	Prepare the operating activities section of the statement of cash flows for January 2015.(Negative amounts/Cash outflows should be entered with a minus sign. Enter your answers in millions.)

6.	Compute the companys total asset turnover ratio.(Round your answer to 3 decimal places.)

Mitakis Inc., a small service repair company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as at the end of the companys fiscal year, December 31, 2015:

Account Titles	Debit		Credit
Cash	$	30,900
Trade receivables		13,400
Supplies inventory		2,750
Prepaid insurance		1,850
Equipment (seven-year life, no residual value)		53,100
Accumulated depreciation, equipment					$	23,600
Other assets		8,000
Trade payables						6,850
Note payable (three years; 8% each December 31)						16,600
Contributed capital (6,900 shares)						18,700
Retained earnings						11,750
Service revenue						62,500
Other expenses, excluding income tax		30,000
Totals	$	140,000			$	140,000

Data not yet recorded at December 31, 2015, include the following:
a.	Depreciation expense for 2015, $5,900.
b.	Insurance expired during 2015, $740.
c.	Wages earned by employees not yet paid on December 31, 2015, $2,550.
d.	Supplies inventory on December 31, 2015, reflecting $890 remaining on hand.
e.	Income tax expense, $4,400.

Required:
1.	Prepare the adjusting entries at December 31, 2015.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.	Show the effects of the adjusting entries on net earnings and cash.(If there is no cash flow effect, select "None". Enter any decreases to account balances with a minus sign.)

3-a.	Prepare a statement of earnings for 2015.(Round your Earnings per share to 2 decimal places.)

3-b.	Prepare a statement of financial position at December 31, 2015.

4.	Compute the net earnings for the year, assuming that you did not make an adjustment to the balance of the supplies inventory account.(Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)

5.	Prepare the closing entries at December 31, 2015.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)