Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Orange Incorporated, headquartered in Cupertino, California, designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Orange Incorporated, headquartered in Cupertino, California, designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services. The following is Orange's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September). ASSETS Current assets: Cash ORANGE INCORPORATED CONSOLIDATED BALANCE SHEET September 28, 2019 (dollars in millions) Short-term investments Accounts receivable Inventories $13,904 11,281 17,534 2,119 Other current assets 23,973 Total current assets 68,811 Long-term investments 130,694 Property, plant, and equipment, net 20,708 Other noncurrent assets 12,574 Total assets $232,787 LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities: Accounts payable $30,320 Accrued expenses 18,529 Unearned revenue Short-term debt Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock ($0.00001 par value). Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and shareholders' equity 8,527 6,334 63,710 29,107 27,971 120,788 1 23,812 88,186 111,999 $232,787 Accume that the followinn trancartinne fin millinnel occurred durinn the novt ficcal voar landing on Sentemher 26 2020 ms Saved Help S Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock ($0.00001 par value) Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and shareholders' equity 63,710 29,107 27,971 120,788 1 23,812 88,186 111,999 $232,787 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 26, 2020): a. Borrowed $18,277 from banks due in two years. b. Purchased additional investments for $21,900 cash; one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,581 in cash and signed a short-term note for $1,420. d. Issued additional shares of common stock for $1,479 in cash; total par value was $1 and the rest was in excess of par value. e. Sold short-term investments costing $19,019 for $19,019 cash. f. Declared $11,135 in dividends to be paid at the beginning of the next fiscal year. Required Required: 2. Post each transaction to the appropriate T-accounts. Note: Enter your answers in millions. Cash Credit Debit Beginning Balance Debit Beginning Balance 13,904 Ending Balance 13,904 Accounts Receivable Debit 17,534 Beginning Balance Ending Balance Debit 17,534 Other Current Assets Short-term Investments 11,281 Ending Balance 11,281 Credit Inventories Credit Credit Debit Beginning Balance 2,119 Credit Ending Balance 2,119 Long-term investments Debit Credit 15 Debit Beginning Balance Other Current Assets 23,973 ed Ending Balance bk Debit Beginning Balance 23,973 Long-term Investments Credit Debit Credit Beginning Balance 130,694 Property, Plant, and Equipment 20,708 nces Ending Balance 20,708 Ending Balance 130,694 Other Noncurrent Assets Credit Debit Credit Beginning Balance 12,574 Ending Balance 12,574 Accounts Payable Accrued Expenses Debit Credit. Debit Credit 30,320 Beginning Balance 18,529 Beginning Balance Ending Balance 30,320 Ending Balance 18,529 es Unearned Revenue Debit Beginning Balance Ending Balance 8,527 Credit Short-term Debt Debit Beginning Balance Credit 6,334 8,527 Ending Balance 6,334 Dividends Payable Long-term Debt Debit Credit Debit Credit Beginning Balance 29,107 Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Other Noncurrent Liabilities Common Stock Credit Debit 27,971 Beginning Balance 29,107 Ending Balance 27,971 Ending Balance 1 Credit 1 edi nces Debit Beginning Balance Other Noncurrent Liabilities Credit 27,971 Ending Balance Debit Beginning Balance 27,971 Additional Paid-in Capital Credit 23,812 Common Stock Debit Credit Beginning Balance Ending Balance Retained Earnings Debit Credit 88,186 Beginning Balance Ending Balance 23,812 Ending Balance 88,186

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions