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

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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	$13,994
Short-term investments	11,353
Accounts receivable	17,644
Inventories	2,130
Other current assets	24,096
Total current assets	69,217
Long-term investments	131,466
Property, plant, and equipment, net	20,831
Other noncurrent assets	12,650
Total assets	$234,164
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts payable	$30,501
Accrued expenses	18,641
Unearned revenue	8,581
Short-term debt	6,372
Total current liabilities	64,095
Long-term debt	29,284
Other noncurrent liabilities	28,139
Total liabilities	121,518
Stockholders equity:
Common stock ($0.00001 par value)	1
Additional paid-in capital	24,912
Retained earnings	87,733
Total stockholders equity	112,646
Total liabilities and shareholders' equity	$234,164

Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 26, 2020):

Borrowed $18,293 from banks due in two years.

Purchased additional investments for $23,600 cash; one-fifth were long term and the rest were short term.

Purchased property, plant, and equipment; paid $9,600 in cash and signed a short-term note for $1,438.

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.

Sold short-term investments costing $19,035 for $19,035 cash.

Declared $11,154 in dividends to be paid at the beginning of the next fiscal year.

P2-5 Part 4

Required:

4. Prepare a classified balance sheet for Orange at September 26, 2020, based on these transactions.