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 [The following information applies to the questions displayed below.] 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 Short-term investments Accounts receivable Inventories $13,864 11,249 17,485 2,114 Other current assets 23,917 Total current assets 68,629 Long-term investments 130,348 Property, plant, and equipment, net 20,653 Other noncurrent assets 12,540 Total assets $232,170 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $30,239 Accrued expenses 18,479 Unearned revenue Short-term debt 8,503 6,317 Total current liabilities Other noncurrent liabilities. 63,538 Long-term debt Total liabilities Stockholders' equity: Common stock ($0.00001 par value) 29,028 27,896 120,462 Inventories Other current assets Total current assets 2,114 23,917 68,629 Long-term investments 130,348 Property, plant, and equipment, net 20,653 Other noncurrent assets 12,540 Total assets $232,170 LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities: Accounts payable $30,239 Accrued expenses 18,479 8,503 6,317 63,538 29,028 27,896 120,462 1 23,512 88,195 111,708 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 $232,170 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 26, 2020): a. Borrowed $18,268 from banks due in two years. b. Purchased additional investments for $21,200 cash; one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,573 in cash and signed a short-term note for $1,413. d. Issued additional shares of common stock for $1,472 in cash; total par value was $1 and the rest was in excess of par value. e. Sold short-term investments costing $19,010 for $19,010 cash. f. Declared $11,129 in dividends to be paid at the beginning of the next fiscal year. Required information Required: 2. Post each transaction to the appropriate T-accounts. Note: Enter your answers in millions. Cash Credit Debit Beginning Balance Debit Beginning Balance 13,864 Ending Balance 13,864 Debit Beginning Balance Accounts Receivable 17,485 Ending Balance 17,485 Short-term Investments 11,249 Ending Balance 11,249 Credit Inventories Credit Credit Debit Beginning Balance 2,114 Ending Balance 2,114 Debit Beginning Balance Ending Balance Debit Beginning Balance Other Current Assets 23,917 23,917 Property, Plant, and Equipment 20,653 Ending Balance 20,653 Accounts Payable Debit Beginning Balance Long-term Investments Credit Debit Beginning Balance 130,348 Ending Balance 130,348 Credit Other Noncurrent Assets Credit Debit Credit Beginning Balance 12,540 Ending Balance 12.54 Accrued Expenses Credit Debit Credit 30,239 Beginning Balance 18,479 Ending Balance 30.239 Ending Balance 18,479 Unearned Revenue. Debit Beginning Balance Ending Balance 8,503 8,503 Credit Debit Beginning Balance Ending Balance Short-term Debt Dividends Payable Long-term Debt Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Other Noncurrent Liabilities Common Stock Debit Credit Debit 27,896 Beginning Balance Beginning Balance Ending Balance 27,896 Ending Balance Credit 6,317 6,317 Credit 29,028 29,028 Credit 1 Debit Beginning Balance Additional Paid-in Capital Credit 23,512 Debit Beginning Balance Retained Earnings 88,195 Ending Balance 23,512 Ending Balance 88,195 Credit