Refer to the TELUS financial statements in Appendix A at the back of the book . Assume that TELUS completed the following selected transactions during the year ended December 31, 2011 (all amounts in millions).
a. Sold services on account, $3,101.
b. Sold services for cash, $6,505.
c. Collected accounts receivable, $2,991.
d. Paid cash for inventory, $741.
e. Sold inventory that cost $671. Debit "Goods and services purchased."
f. Purchased goods and services on account, $4,055.
g. Paid accounts payable, $4,113.
h. Repaid long-term debt, $1,413.
i. Purchased property, plant, and equipment for cash, $3,200.
Requirements
1. For the following items, set up T-accounts with the given opening balances (note that the debits do not equal the credits because this is only a subset of TELUS's accounts):
a. Cash and Temporary Investments, debit balance of $17
b. Accounts Receivable, debit balance of $1,318
c. Inventories, Debit balance of $283
d. Property, Plant, and Equipment, debit balance of $7,831
e. Accounts Payable and Accrued Liabilities, credit balance of $1,477
f. Long-Term Debt, credit balance of $5,209
g. Service Revenue, balance of $0
h. Goods and Services Purchased, balance of $0
2. Record TELUS's transactions (a) through (i) in the journal. Explanations are not required.
3. Post the transactions in part (2) to the T-accounts (key them by letter) and compute the balance in each account.
4. For each of the following accounts, compare your balance to the actual balance in TELUS's financial statements in Appendix A . Your balances should agree with the actual balances.
a. Cash and Temporary Investments
b. Accounts Receivable
c. Inventories
d. Accounts Payable and Accrued Liabilities
e. Service Revenue
f. Goods and Services Purchased