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P2-5 (Algo) Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2-2, 2-4, 2-5

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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	$13,944
Short-term investments	11,313
Accounts receivable	17,583
Inventories	2,124
Other current assets	24,029
Total current assets	68,993
Long-term investments	131,040
Property, plant, and equipment, net	20,763
Other noncurrent assets	12,608
Total assets	$233,404
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts payable	$30,401
Accrued expenses	18,579
Unearned revenue	8,551
Short-term debt	6,351
Total current liabilities	63,882
Long-term debt	29,186
Other noncurrent liabilities	28,046
Total liabilities	121,114
Stockholders equity:
Common stock ($0.00001 par value)	1
Additional paid-in capital	24,312
Retained earnings	87,977
Total stockholders equity	112,290
Total liabilities and shareholders' equity	$233,404

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

Borrowed $18,284 from banks due in two years.

Purchased additional investments for $22,700 cash; one-fifth were long term and the rest were short term.

Purchased property, plant, and equipment; paid $9,589 in cash and signed a short-term note for $1,427.

Issued additional shares of common stock for $1,487 in cash; total par value was $1 and the rest was in excess of par value.

Sold short-term investments costing $19,026 for $19,026 cash.

Declared $11,143 in dividends to be paid at the beginning of the next fiscal year.

P2-5 Part 3

Required:

3. Prepare a trial balance at September 26, 2020.

Note: Enter your answers in millions.

ORANGE INCORPORATED
Trial Balance
At September 26, 2020
(in millions)
	Debit	Credit
Totals	$0	$0