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.] 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). 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: $ 13,884 11,265 17,509 2,116 23,939 68, 713 130,508 20,679 12,556 $ 232,456 $ 30,277 18,503 8,515 6,325 63,620 29,066 27,932 120,618 Ulrier noncurrent assels 12,50 $ 232,456 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 $ 30,277 18,503 8,515 6,325 63,620 29,066 27,932 120,618 1 23,712 88,125 111,838 $232,456 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): a. Borrowed $18,274 from banks due in two years. b. Purchased additional investments for $21,700 cash; one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,578 in cash and signed a short-term note for $1,418. d. Issued additional shares of common stock for $1,476 in cash; total par value was $1 and the rest was in excess of par value. e. Sold short-term investments costing $19,016 for $19,016 cash. f. Declared $11,133 in dividends to be paid at the beginning of the next fiscal year. Required information 2. Post each transaction to the appropriate T-accounts (Enter your answers in millions.) Cash Short-term Investments Beg. Bal. 13,884 Beg. Bal. 11,265 (b) End. Bal. E End. Bal. Accounts Receivable Inventories Beg. Bal. 17,509 Beg. Bal. 2,116 End. Bal. End. Bal. Other Current Assets Long-term Investments 130,508 Beg. Bal. 23,939 Beg. Bal. End. Bal. End. Bal. Property, Plant, and Equipment Other Noncurrent Assets Beg. Bal. 20,679 Beg. Bal. 12,556 End. Bal. End. Bal. Accounts Payable 30,277 Accrued Expenses 18,503 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Unearned Revenue Short-term Notes Payable 6,325 Beg. Bal. 8,515 Beg. Bal. End. Bal. End. Bal. Dividends Payable Long-term Debt Beg. Bal. Beg. Bal. 29,066 Dividends Payable Long-term Debt Beg. Bal. Beg. Bal. 29,066 End. Bal. End. Bal. Other Noncurrent Liabilities Common Stock Beg. Bal. 27,932 Beg. Bal. 1 End. Bal. End. Bal. Additional Paid-in Capital 23,712 Retained Earnings 88,125 Beg. Bal. Beg. Bal. End. Bal. End. Bal