Question
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
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).
ORANGE INCORPORATED | |
CONSOLIDATED BALANCE SHEET | |
September 28, 2019 | |
(dollars in millions) | |
ASSETS | |
---|---|
Current assets: | |
Cash | $14,054 |
Short-term investments | 11,401 |
Accounts receivable | 17,718 |
Inventories | 2,138 |
Other current assets | 24,186 |
Total current assets | 69,497 |
Long-term investments | 131,998 |
Property, plant, and equipment, net | 20,915 |
Other noncurrent assets | 12,702 |
Total assets | $235,112 |
LIABILITIES AND STOCKHOLDERS EQUITY | |
Current Liabilities: | |
Accounts payable | $30,625 |
Accrued expenses | 18,717 |
Unearned revenue | 8,617 |
Short-term debt | 6,398 |
Total current liabilities | 64,357 |
Long-term debt | 29,404 |
Other noncurrent liabilities | 28,253 |
Total liabilities | 122,014 |
Stockholders equity: | |
Common stock ($0.00001 par value) | 1 |
Additional paid-in capital | 25,512 |
Retained earnings | 87,585 |
Total stockholders equity | 113,098 |
Total liabilities and shareholders' equity | $235,112 |
Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 26, 2020):
a.Borrowed $18,304 from banks due in two years.
b.Purchased additional investments for $24,500 cash; one-fifth were long term and the rest were short term.
c.Purchased property, plant, and equipment; paid $9,610 in cash and signed a short-term note for $1,448.
Issued additional shares of common stock for $1,507 in cash; total par value was $1 and the rest was in excess of par value.
e.Sold short-term investments costing $19,045 for $19,045 cash.
f.Declared $11,163 in dividends to be paid at the beginning of the next fiscal year.
Q:
1. Prepare a journal entry for each transaction
2.. Post each transaction to the appropriate T-accounts.
3.Prepare a trial balance at September 26, 2020.
4.Prepare a classified balance sheet for Orange at September 26, 2020, based on these transactions.
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