Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with the T accounts! Starfruit Inc., headquartered in Ridgway, Colorado, designs, manufactures, and markets mobile communication and media devices, personal computers, and

image text in transcribed

image text in transcribed

image text in transcribed

I need help with the T accounts!

Starfruit Inc., headquartered in Ridgway, Colorado, 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 Starfruit's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September). STARFRUT INC. CONSOLIDATED BALANCE SHEET September 27, 2014 (dollars in millions) ASSETS Current assets: Cash $ 13,994 11,353 17644 2,130 24,096 69,217 131,466 20,831 12,650 S 234164 Accounts receivable Inventories Other current assets Total current assets 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 S 30,501 18,641 8,581 6,372 64,095 29,284 28,139 121,518 Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock ($0.00001 per value) Additional paid-in capital Retained earnings 24,912 87,733 112,646 $ 234,164 Total stockholders' equity Total liabilities and shareholders' equity Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 26, 2015): a. Borrowed $18,293 from banks due in two years. b. Purchased additional Investments for $23,600 cash: one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,600 in cash and signed a short-term note for $1,438 d. Issued additional shares of common stock for $1,498 in cash; total par value was $1 and the rest was in excess of par value. e. Sold short-term investments costing $19,035 for $19,035 cash. f. Declared $11,154 In dividends to be pald at the beginning of the next fiscal year. 2. Create T-accounts for each balance sheet account. Post each transaction to the appropriate T-accounts (Enter your answers in millions.) Cash Short-term Investments Beg. Bal 13,994 Beg. Bal 11,353 18,293 23,600 (b) End. Bal 11,353 End. Bal 8,687 Accounts Receivable Inventories Beg. Bal 17,644 Beg. Bal 2,130 End. Bal 17,644 End. Bal 2,130 Other Current Assets Long-term Investments Beg. Bal 24,096 Beg. Bal 131,466 End. Bal 24,096 End. Bal 131,466 Property, Plant, and Equipment Other Noncurrent Assets Beg. Bal 20,831 Beg. Bal 12,650 End. Bal 20,831 End. Bal 12,650 Accounts Payable Accrued Expenses Beg. Bal 30,501 Beg. Bal 18,641 End. Bal 30,501 End. Bal 18,641 Unearned Revenue Short-term Notes Pavable Unearned Revenue Short-term Notes Payable 6,372 Beg. Bal 8,581 Beg. Bal End. Bal 8,581 End. Bal 6,372 Dividends Payable Long-term Debt Beg. Bal Beg. Bal 29,284 18,293 (a) End. Bal End. Bal 47,577 Other Noncurrent Liabilities Common Stock Beg. Bal 28,139 Beg. Bal End. Bal 28,139 End. Bal Additional Paid-in Capital 24,912 Retained Earnings Beg. Bal Beg. Bal 87,733 End. Bal 24,912 End. Bal 87,733

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Challenges In Advanced Management Accounting

Authors: The Open University

1st.0th Edition

B01D8X506Y

More Books

Students also viewed these Accounting questions

Question

What is topology? Explain with examples

Answered: 1 week ago