Required information 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 ASSETS September 30, 2017 (dollars in millions) Current assets: Cash Short-term investments Accounts receivable Inventories $ 14,104 11,441 17,780 2,145 Other current assets 24,265 Total current assets 69,735 Long-term investments 132,450 Property, plant, and 20,986 equipment, net Other noncurrent assets Total assets 12,746 $235,917 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 30,730 Accrued expenses 18,781 Unearned revenue 8,647 Short-term notes payable 6,420 Total current 64,578 liabilities Long-term debt 29,505 Other noncurrent 28,349 liabilities Total liabilities 122,432 Stockholders' equity: Common stock ($0.00001 per value) Additional paid-in capital Retained earnings 1 25,812 87,672 113,485 Total liabilities and $235,917 Total stockholders' equity shareholders' equity Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): a. Borrowed $18,312 from banks due in two years. b. Purchased additional investments for $25,200 cash; one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,618 in cash and signed a short-term note for $1,456. d. Issued additional shares of common stock for $1,515 in cash; total par value was $1 and the rest was in excess of par value. e. Sold short-term investments costing $19,052 for $19,052 cash. f. Declared $11,172 in dividends to be paid at the beginning of the next fiscal year. P2-5 Part 2 2. Post each transaction to the appropriate T-accounts (Enter your answers in millions.) Cash Beg. Bal. 14,104 Short-term Investments Beg. Bal. 11,441 End. Bal. 11,441 End. Bal. 14,104 Accounts Receivable Inventories Beg. Bal. 17,780 Beg. Bal. 2,145 End. Bal. 17,780 End. Bal. 2,145 Other Current Assets Long-term Investments Beg. Bal. 24,265 Beg. Bal. 132,450 End. Bal. 24,265 End. Bal. 132,450 Property, Plant, and Equipment Other Noncurrent Assets Beg. Bal. 20,986 Beg. Bal. 12,746 End. Bal. 20,986 End. Bal. 12,746 Accounts Payable Accrued Expenses Beg. Bal. 30,730 Beg. Bal. 18,781 End. Bal. 30,730 End. Bal. 18,781 Unearned Revenue Short-term Notes Payable Beg. Bal. 8,647 Beg. Bal. 6,420 End. Bal. 8,647 End. Bal. 6,420 Dividends Payable Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. Long-term Debt 29,505 29,505 Other Noncurrent Liabilities Common Stock Beg. Bal. 28,349 Beg. Bal. 1 End. Bal. 28,349 End. Bal. 1 Additional Paid-in Capital Retained Earnings Beg. Bal. 25,812 Beg. Bal. 87,672 End. Bal. 25,812 End. Bal. 87,672