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 Mangos (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September).

Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018):

a. Borrowed $21,293 from banks due in two years.

b. Purchased additional investments for $20,600 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 paid at the beginning of the next fiscal year.

Post journal entries to record the transactions and then compute the current ratio for the year ending on September 29, 2018

$ 13,994 11,353 17,644 2,130 24,096 69,217 131,466 20,831 12,650 $ 234,164 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 $ 30,501 18,641 8,581 6,372 64,095 29,284 28, 139 121,518 1 24,912 87,733 112,646 $ 234,164