P2-5 (Algo) Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 (GL) Mango Inc., headquartered in Cupertino, California, 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 Mango's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September). $ 13,904 11,281 17,534 2,119 23,973 68,811 130,694 20,708 12,574 $ 232,787 MANGO INC. CONSOLIDATED BALANCE SHEET September 30, 2017 (dollars in millions) ASSETS Current assets: Cash Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments 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 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 Total stockholders' equity Total liabilities and shareholders' equity $ 30,320 18,529 8,527 6,334 63,710 29,107 27,971 120,788 23,812 88,186 111,999 $ 232,787 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): a. Borrowed $21,277 from banks due in two years. b. Purchased additional investments for $18,900 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. Requirement General Journal General Ledger Trial Balance Balance Sheet Analysis Each journal entry is posted automatically to the general ledger. General Ledger Account Cash Accounts receivable Debit Credit No. Debit Credit No. Date Sep 29, 2018 Balance 13,904 Date Sep 29, 2018 Balance 17,534 Inventories Short-term investments No. Date Debit Credit No. Date Debit Balance 2,119 Credit Balance 11,281 Sep 29, 2018 Sep 29, 2018 Other current assets Long-term investments Debit Credit No. Debit Credit No. Date Sep 29, 2018 Balance 23,973 Date Sep 29, 2018 Balance 130,694 Other noncurrent assets No. Property, plant and equipment Date Debit Credit Sep 29, 2018 No. Debit Credit Balance 20,708 Date Sep 29, 2018 Balance 12,574 Accounts payable Debit Credit Accrued expenses Debit Credit No. No. Date Sep 29, 2018 Balance 30,320 Date Sep 29, 2018 Balance 18,529 Unearned revenue Debit Credit No. No. Date Sep 29, 2018 Balance 8,527 Short-term notes payable Date Debit Credit Sep 29, 2018 Balance 6,334 Other noncurrent liabilities Long-term debt Debit Credit No. No. Date Debit Credit Balance Date Sep 29, 2018 Balance 29,107 Sep 29, 2018 27,971 Common stock Additional paid-in-capital No. Debit Credit Balance No. Date Debit Credit Date Sep 29, 2018 Balance 23,812 1 Sep 29, 2018 Retained earnings No. Debit Credit Date Sep 29, 2018 Balance 88,186 P2-5 (Algo) Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 (GL) Mango Inc., headquartered in Cupertino, California, 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 Mango's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September). $ 13,904 11,281 17,534 2,119 23,973 68,811 130,694 20,708 12,574 $ 232,787 MANGO INC. CONSOLIDATED BALANCE SHEET September 30, 2017 (dollars in millions) ASSETS Current assets: Cash Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments 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 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 Total stockholders' equity Total liabilities and shareholders' equity $ 30,320 18,529 8,527 6,334 63,710 29,107 27,971 120,788 23,812 88,186 111,999 $ 232,787 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): a. Borrowed $21,277 from banks due in two years. b. Purchased additional investments for $18,900 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. Requirement General Journal General Ledger Trial Balance Balance Sheet Analysis Each journal entry is posted automatically to the general ledger. General Ledger Account Cash Accounts receivable Debit Credit No. Debit Credit No. Date Sep 29, 2018 Balance 13,904 Date Sep 29, 2018 Balance 17,534 Inventories Short-term investments No. Date Debit Credit No. Date Debit Balance 2,119 Credit Balance 11,281 Sep 29, 2018 Sep 29, 2018 Other current assets Long-term investments Debit Credit No. Debit Credit No. Date Sep 29, 2018 Balance 23,973 Date Sep 29, 2018 Balance 130,694 Other noncurrent assets No. Property, plant and equipment Date Debit Credit Sep 29, 2018 No. Debit Credit Balance 20,708 Date Sep 29, 2018 Balance 12,574 Accounts payable Debit Credit Accrued expenses Debit Credit No. No. Date Sep 29, 2018 Balance 30,320 Date Sep 29, 2018 Balance 18,529 Unearned revenue Debit Credit No. No. Date Sep 29, 2018 Balance 8,527 Short-term notes payable Date Debit Credit Sep 29, 2018 Balance 6,334 Other noncurrent liabilities Long-term debt Debit Credit No. No. Date Debit Credit Balance Date Sep 29, 2018 Balance 29,107 Sep 29, 2018 27,971 Common stock Additional paid-in-capital No. Debit Credit Balance No. Date Debit Credit Date Sep 29, 2018 Balance 23,812 1 Sep 29, 2018 Retained earnings No. Debit Credit Date Sep 29, 2018 Balance 88,186