Refer to Apple Inc.s financial statements in Appendix A and online in the filings section of Assume that Apple


Refer to Apple Inc.’s financial statements in Appendix A and online in the filings section of Assume that Apple completed the following selected transactions during 2016:

a. Made company sales (revenue) of $215,639 million, all on account (debit Accounts Receivable, net; credit Net Sales).

b. Collected cash on accounts receivable, $216,734 million.
c. Purchased inventories on account, $131,159 million (credit Accounts Payable).
Incurred cost of sales in the amount of $131,376 million. Debit the Cost of Sales (expense) account. Credit the Inventories account.
e. Paid accounts payable in cash, $129,355 million.
f. Paid operating expenses in cash, $24,239 million.
g. Received cash from Other Income/(Expense), net, $1,348 million.
h. Paid income taxes, $15,685 million in cash (debit Provision for Income Taxes).
i. Paid cash for other non-current assets, $3,335 million.
j. Paid cash of $4,539 million for purchase of Property, Plant, and Equipment, net.

1. Set up T-accounts for beginning balances of Cash ($0* balance); Accounts Receivable, net (debit balance of $16,849 million); Inventories (debit balance of $2,349 million); Property, Plant, and Equipment, net (debit balance of $22,471 million); Other Non-Current Assets (debit balance of $5,422 million); Accounts Payable (credit balance of $35,490 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’s actual balance as shown on its 2016 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 Non-Current Assets
e. Accounts Payable
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 for 2016. Compare the net income (loss) you computed to Apple’s actual net income (loss). The two amounts should be equal.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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Related Book For  answer-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Question Details
Chapter # 2- Transaction Analysis
Section: Short Exercises
Problem: 77
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Question Posted: June 13, 2019 09:13:02