Refer to Apple Inc.'s financial statements in Appendix A and online in the filings section of www.sec.gov. Assume that Apple completed the following selected transactions during 2014:

a. Made company sales (revenue) of $182,795 million, all on account (debit Accounts Receivable, net; credit Net Sales).

b. Collected cash on accounts receivable, $178,437 million.

c. Purchased inventories on account, $ 112,605 million (credit Accounts Payable).

d. Incurred cost of sales in the amount of $ 112,258 million. Debit the Cost of Sales (expense) account. Credit the Inventories account.

e. Paid accounts payable in cash, $104,776 million.

f. Paid operating expenses in cash, $18,034 million.

g. Received cash from Other Income/(Expense), net, $980 million.

h. Paid income taxes, $13,973 million in cash (debit Provision for Income Taxes).

i. Received cash from sale of other assets, $1,382 million.

j. Paid cash of $4,027 million for purchase of Property, Plant, and Equipment, net.

Requirements

1. Set up T-accounts for beginning balances of Cash ($0* balance); Accounts Receivable, net (debit balance of $13,102 million); Inventories (debit balance of $1,764 million); Property, Plant, and Equipment, net (debit balance of $16,597 million); Other Assets (debit balance of $ 5,146 million); Accounts Payable (credit balance of $22,367 million); Net Sales

($0 balance); Cost of Sales ($0 balance); Operating Expenses ($0 balance); Other Income/ (Expense), net ($0 balance); Provision for Income Taxes ($0 balance).

2. Journalize Apple's transactions a-j. Explanations are not required.

3. Post to the T-accounts, and compute the balance for each account. Key postings by transaction letters a-j.

4. For each of the following accounts, compare your computed balance to Apple Inc.'s, actual balance as shown on its 2014 Consolidated Statement of Operations or Consolidated Balance Sheet in Appendix A at the end of the book. Your amounts should agree with the actual figures.

a. Accounts Receivable, net

b. Inventories

c. Property, Plant, and Equipment, net (assume no other activity in these assets than given in the problem)

d. Other Assets

e. Accounts Payable

f. Net Sales

g. Cost of Sales

h. Operating Expenses

i. Other Income/(Expense), net

j. Provision for Income Taxes

5. Use the relevant accounts from requirement 4 to prepare a summary, single-step income statement for Apple Inc., for 2014. Compare the net income (loss) you computed to Apple Inc.'s actual net income (loss). The two amounts should be equal.