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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.,

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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 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 $ 14,074 Short-term investments 11,417 Accounts receivable 17,743 Inventories 2,141 Other current assets 24,220 Total current assets 69,595 Long-term investnents 132, 184 Property, plant, and equipment, net 20,944 Other noncurrent assets 12,720 Total assets $ 235, 443 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable 5 30,668 Accrued expenses 18,743 Unearned revenue 8,629 Short-term notes payable 6,407 Total current liabilities 64,447 Long-term debt 29,445 Other noncurrent liabilities 28,292 Total liabilities 122, 184 Stockholders' equity! Common stock (50.00091 per value) Additional paid-in capital 25,612 Retained earnings 87,646 Total stockholders' equity 113,259 Total liabilities and shareholders' equity $235,443 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): a. Borrowed $21,306 from banks due in two years. b. Purchased additional investments for $21,800 cash, one-fifth were long term and the rest were short term. c Purchased property, plant, and equipment; paid $9,612 in cash and signed a short-term note for $1,451 d. Issued additional shares of common stock for $1.510 in cash: total par value was S1 and the rest was in excess of par value. e. Sold short-term investments costing $19,047 for $19,047 cash. Declared $11,166 in dividends to be paid at the beginning of the next fiscal year. Requirement General General Journal Ledger Trial Balance Balance Sheet Analysis General Journal tab. Prepare foumal entries to record the transactions listed in (a) through (1). Review the accounts as shown in the General Ledger and Trial Balance tabs. General Ledger tab - Each journal entry is posted automatically to the General Ledger Trial Balance tab - Your choice will determine the reported values on the financial statement tabs. Balance Sheet tab - Use the drop-downs to select the accounts that should be properly included on the Balance Sheet. Analysis tab - Compute Mango's current ratio for the year ending on September 29, 2018. General Journal >

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