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:

Assume that the following transactions (in millions of dollars) occurred in fiscal year 2021 (ended on December 31, 2021):

1. Issued additional shares for $200 in cash.
2. Borrowed $6,300 from creditors; due in 10 years.
3. Purchased additional investments for $1,500 cash; one-fifth were long-term and the rest were short-term.
4. Purchased property, plant, and equipment; paid $4,650 in cash and $850 with additional long-term bank loans.
5. Lent $250 to associated companies that signed a six-month note.
6. 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, 2020 balances. Post each journal entry to the appropriate T-account.
3. Prepare a trial balance as at December 31, 2021.
4. Prepare a statement of financial position for BCE based on the -account ending balances at December 31, 2021.
5. Compute BCE's current ratio for fiscal year 2021. What does this suggest about the company?

\begin{tabular}{|c|c|} \hline \multicolumn{2}{|l|}{BCEINC.StatementofFinancialPositionAtDecember31,2020(inmillionsofCanadiandollars)} \\ \hline \multicolumn{2}{|l|}{ ASSETS } \\ \hline \multicolumn{2}{|l|}{ Current assets } \\ \hline Cash & $224 \\ \hline Trade and other receivables & 3,528 \\ \hline Inventory & 439 \\ \hline Prepaid expenses & 209 \\ \hline Other current assets & 1,288 \\ \hline Total current assets & 5,688 \\ \hline \multicolumn{2}{|l|}{ Non-current assets } \\ \hline Property, plant, and equipment, net & 27.513 \\ \hline Long-term investments & 756 \\ \hline Intangible assets & 13,102 \\ \hline Goodwill & 10,604 \\ \hline Other non-current assets & 3.002 \\ \hline Total assets & $60,665 \\ \hline \multicolumn{2}{|l|}{ LIABILITIES AND SHAREHOLDERS' EQUITY } \\ \hline \multicolumn{2}{|l|}{ Current liabilities } \\ \hline Trade payables and other liabilities & \$ 3,935 \\ \hline Interest payable & 222 \\ \hline Current tax liabilities & 214 \\ \hline Dividends payable & 766 \\ \hline Debt due within one year & 2,417 \\ \hline Other current liabilities & 717 \\ \hline Total current liabilities & 8,271 \\ \hline \end{tabular} Prepaid expenses 209 Other current assets 1,288 Total current assets 5,688 Non-current assets Property, plant, and equipment, net 27.513 Long-term investments 756 Intangible assets 13,102 Goodwill 10,604 Other non-current assets 3,002 Total assets $60,665 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade payables and other liabilities Interest payable Current tax liabilities Dividends payable Debt due within one year Other current liabilities Total current liabilities $3,935 Non-current liabilities Long-term debt 222 214 766 Other non-current liabilities Total non-current liabilities Total liabilities 2,417 717 8,271 Shareholders' equity 23,906 Total liabilities and shareholders' equity 7,15931,06539,33621,329$60,665 Source: BCE Inc., Annual Report 2020