P$2-5($Algo$)$ Recording Transactions, Preparing Journal Entries, Posting to T$-$Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO$2-2,2-4,2-5!$

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P$2-5($Algo$)$ Recording Transactions, Preparing Journal Entries, Posting to T$-$Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO$2-2,2-4,2-5$

$[$The following information applies to the questions displayed below.$]$

Orange Incorporated, headquartered in Cupertino, California, designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services. The following is Orange's $($simplified$)$ balance sheet from a recent year $($fiscal year ending on the last Saturday of September$).$

$\backslash$table$[[\backslash$table$[[$ORANGE INCORPORATED$],[$CONSOLIDATED BALANCE SHEET$],[$September $28,2019],[($dollars in millions$)]],],[$ASSETS$],[$Current assets:$],[$Cash$,$$$13,864],[$Short$-$term investments,$11,249],[$Accounts receivable,$17,485],[$Inventories$,2,114],[$Other current assets,$23,917],[$Total current assets,$68,629],[$Long$-$term investments,$130,348],[$Property$,$ plant, and equipment, net,$20,653],[$Other noncurrent assets,$12,540],[$Total assets,$$232,170],[$LIABILITIES AND STOCKHOLDERS' EQUITY$],[$Current Liabilities:$],[$Accounts payable,$$30,239],[$Accrued expenses,$18,479],[$Unearned revenue,$8,503],[$Short$-$term debt,$6,317],[$Total current liabilities,$63,538],[$Long$-$term debt,$29,028],[$Other noncurrent liabilities,$27,896],[$Total liabilities,$120,462],[$Stockholders$\text{'}$ equity:$],[$Common stock $($ $$0\mathrm{.}00001$ par value$),1]]$ Total liabilities

Stockholders' equity:

Assume that the following transactions $($in millions$)$ occurred during the next fiscal year $($ending on September $26,2020)$:

a$.$ Borrowed $$18,268$ from banks due in two years.

b$.$ Purchased additional investments for $$21,200$ cash; one$-$fifth were long term and the rest were short term.

c$.$ Purchased property, plant, and equipment; paid $$9,573$ in cash and signed a short$-$term note for $$1,413.$

d$.$ Issued additional shares of common stock for $$1,472$ in cash; total par value was $$1$ and the rest was in excess of par

value.

e$.$ Sold short$-$term investments costing $$19,010$ for $$19,010$ cash.

f$.$ Declared $$11,129$ in dividends to be paid at the beginning of the next fiscal year.

P$2-5$ Part $2$

Required:

Post each transaction to the appropriate T$-$accounts.

Note: Enter your answers in millions.

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$[$The following information applies to the questions displayed below.$]$

Orange Incorporated, headquartered in Cupertino, California, designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services. The following is Orange's $($simplified$)$ balance sheet from a recent year $($fiscal year ending on the last Saturday of September$).$

ORANGE INCORPORATED

CONSOLIDATED BALANCE SHEET

September $28,2019$

$($dollars in millions$)$

ASSETS

Current assets:

Cash $$13,864$

Short$-$term investments $11,249$

Accounts receivable $17,485$

Inventories $2,114$

Other current assets $23,917$

Total current assets $68,629$

Long$-$term investments $130,348$

Property, plant, and equipment, net $20,653$

Other noncurrent assets $12,540$

Total assets $$232,170$

LIABILITIES AND STOCKHOLDERS$$ EQUITY

Current Liabilities:

Accounts payable $$30,239$

Accrued expenses $18,479$

Unearned revenue $8,503$

Short$-$term debt $6,317$

Total current liabilities $63,538$

Long$-$term debt $29,028$

Other noncurrent liabilities $27,896$

Total liabilities $120,462$

Stockholders$$ equity:

Common stock $($$$0\mathrm{.}00001$ par value$)1$

Additional paid$-$in capital $23,512$

Retained earnings $88,195$

Total stockholders$$ equity $111,708$

Total liabilities and shareholders' equity $$232,170$

Assume that the following transactions $($in millions$)$ occurred during the next fiscal year $($ending on September $26,2020)$:

Borrowed $$18,268$ from banks due in two years.

Purchased additional investments for $$21,200$ cash; one$-$fifth were long term and the rest were short term.

Purchased property, plant, and equipment; paid $$9,573$ in cash and signed a short$-$term note for $$1,413.$

Issued additional shares of common stock for $$1,472$ in cash; total par value was $$1$ and the rest was in excess of par value.

Sold short$-$term investments costing $$19,010$ for $$19,010$ cash.

Declared $$11,129$ in dividends to be paid at the beginning of the next fiscal year.