Use the following information to prepare journal

entries, post them to T-accounts, determine ending

balances in the accounts and prepare an new

balance that reflects the effect of these

transactions. Then answer the question that follows.

Medgers, Inc

Balance Sheet

December 31, 2011

(dollars in millions)

Assets

Cash $8,728

Accounts Receivable $2,727

Inventories $3,165

Property, Plant & Equipment $2,429

Liabilities & Stockholders' Equity

Accounts Payable $6,769

Long-term Note Payable $2,675

Contributed Capital $747

Retained Earnings $XX

Assume the following transactions (in millions of

dollars) occurred during 2012.

a. Borrowed $339 from banks, due in 3 years. (All

interest payments will occur at the end of the

contract.)

b. Lent $11 to a supplier, who signed a 2-year note.

c. Purchased property, plant and equipment; paid

$40 in cash and signed a 5-year note for the

remaining balance due of $121

d. Issued additional shares of stock for $134

e. Acquired inventory valued at $1,104 from

suppliers on account.

f. Collected $1,045 from customers for sales made

in the previous period.

g. Paid $1,884 owed to suppliers.

What is the balance in the cash account at the end

of the year?

Selected Answer: 8,311