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 Unearned revenue: Short-term debt Total current liabilities Long-term debt Other noncurrent liabilities, 18,479 8,503 6,317 63,538 29,028 27,896 130 463 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 18,479 8,503 6,317 Accrued expenses 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 63,538 29,028 27,896 120,462 1 23,512 88,195 111,708 $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: 4. Prepare a classified balance sheet for Orange at September 26, 2020, based on these transactions. Note: Enter your answers in millions. Assets ORANGE INCORPORATED Balance Sheet (in millions) 0 Required information 0 $ 0 Liabilities and stockholders' equity 0 Required information. $ Liabilities and stockholders' equity 0 0 0 $ 0