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	$13,964
Short-term investments	11,329
Accounts receivable	17,607
Inventories	2,126
Other current assets	24,051
Total current assets	69,077
Long-term investments	131,200
Property, plant, and equipment, net	20,789
Other noncurrent assets	12,624
Total assets	$233,690
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts payable	$30,439
Accrued expenses	18,603
Unearned revenue	8,563
Short-term debt	6,359
Total current liabilities	63,964
Long-term debt	29,224
Other noncurrent liabilities	28,082
Total liabilities	121,270
Stockholders equity:
Common stock ($0.00001 par value)	1
Additional paid-in capital	24,612
Retained earnings	87,807
Total stockholders equity	112,420
Total liabilities and shareholders' equity	$233,690

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

Borrowed $18,289 from banks due in two years.

Purchased additional investments for $23,200 cash; one-fifth were long term and the rest were short term.

Purchased property, plant, and equipment; paid $9,594 in cash and signed a short-term note for $1,433.

Issued additional shares of common stock for $1,492 in cash; total par value was $1 and the rest was in excess of par value.

Sold short-term investments costing $19,030 for $19,030 cash.

Declared $11,148 in dividends to be paid at the beginning of the next fiscal year.

P2-5 (Algo)

\begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Other Noncurrent Liabilities } \\ \hline \multicolumn{2}{|c|}{ Debit } \\ \hline Beginning Balance & & 28,082 & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Ending Balance & & 28,082 & \\ \hline \hline \end{tabular} \begin{tabular}{|l|l|c|c|} \hline \multicolumn{2}{|c|}{ Common Stock } \\ \hline \multicolumn{1}{|c|}{ Debit } & & \multicolumn{2}{c|}{ Credit } \\ \hline Beginning Balance & & 1 & \\ \hline & & & \\ \hline & & & \\ \hline & & 1 & \\ \hline Ending Balance & & & \\ \hline & & & \\ \hline \end{tabular} 2. Post each transaction to the appropriate T-accounts. Note: Enter your answers in millions. Answer is not complete