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 Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments Property, plant, and equipment, net Other noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued expenses Unearned revenue Short-term debt Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock ($0.00001 par value) Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and shareholders' equity $13,944 11,313 17,583 2,124 24,029 68,993 131,040 20,763 12,608 $233,404 $30,401 18,579 8,551 6,351 63,882 29,186 28,046 121,114 1 24,312 87,977 112,290 $233,404 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 26, 2020): a. Borrowed $18,284 from banks in two years. b. Purchased additional investments for $22,700 cash; one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,589 in cash and signed a short-term note for $1,427. d. 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. e. Sold short-term investments costing $19,026 for $19,026 cash. f. Declared $11,143 in dividends to be paid at the beginning of the next fiscal year.
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 Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments Property, plant, and equipment, net Other noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued expenses Unearned revenue Short-term debt Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock ($0.00001 par value) Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and shareholders' equity $13,944 11,313 17,583 2,124 24,029 68,993 131,040 20,763 12,608 $233,404 $30,401 18,579 8,551 6,351 63,882 29,186 28,046 121,114 1 24,312 87,977 112,290 $233,404 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 26, 2020): a. Borrowed $18,284 from banks in two years. b. Purchased additional investments for $22,700 cash; one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,589 in cash and signed a short-term note for $1,427. d. 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. e. Sold short-term investments costing $19,026 for $19,026 cash. f. Declared $11,143 in dividends to be paid at the beginning of the next fiscal year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please correct solution and Do not Give image format
![Required information
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
[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
Short-term investments
Accounts receivable
Inventories
Other current assets
Total current assets
Long-term investments
Property, plant, and equipment,
net
Other noncurrent assets
Total assets
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable
Accrued expenses
Unearned revenue
Short-term debt
Total current liabilities
Long-term debt
Other noncurrent liabilities
Total liabilities
Stockholders' equity:
Common stock ($0.00001 par
value)
Additional paid-in capital
Retained earnings
Total stockholders' equity
Total liabilities and
shareholders' equity
$13,944
11,313
17,583
2,124
24,029
68,993
131,040
20,763
12,608
$233,404
$30,401
18,579
8,551
6,351
63,882
29,186
28,046
121,114
1
24,312
87,977
112,290
$233,404
Assume that the following transactions (in millions) occurred during the next fiscal year (ending on
September 26, 2020):
a. Borrowed $18,284 from banks due in two years.
b. Purchased additional investments for $22,700 cash; one-fifth were long term and the rest were short
term.
c. Purchased property, plant, and equipment; paid $9,589 in cash and signed a short-term note for $1,427.
d. 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.
e. Sold short-term investments costing $19,026 for $19,026 cash.
f. Declared $11,143 in dividends to be paid at the beginning of the next fiscal year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7f0a31e-149e-4057-91bc-41e0ddd41717%2F31ed7371-c9b1-48f2-a8a2-bc9ef838b329%2Fk115tce_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
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
[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
Short-term investments
Accounts receivable
Inventories
Other current assets
Total current assets
Long-term investments
Property, plant, and equipment,
net
Other noncurrent assets
Total assets
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable
Accrued expenses
Unearned revenue
Short-term debt
Total current liabilities
Long-term debt
Other noncurrent liabilities
Total liabilities
Stockholders' equity:
Common stock ($0.00001 par
value)
Additional paid-in capital
Retained earnings
Total stockholders' equity
Total liabilities and
shareholders' equity
$13,944
11,313
17,583
2,124
24,029
68,993
131,040
20,763
12,608
$233,404
$30,401
18,579
8,551
6,351
63,882
29,186
28,046
121,114
1
24,312
87,977
112,290
$233,404
Assume that the following transactions (in millions) occurred during the next fiscal year (ending on
September 26, 2020):
a. Borrowed $18,284 from banks due in two years.
b. Purchased additional investments for $22,700 cash; one-fifth were long term and the rest were short
term.
c. Purchased property, plant, and equipment; paid $9,589 in cash and signed a short-term note for $1,427.
d. 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.
e. Sold short-term investments costing $19,026 for $19,026 cash.
f. Declared $11,143 in dividends to be paid at the beginning of the next fiscal year.
Transcribed Image Text:Required:
3. Prepare a trial balance at September 26, 2020.
Note: Enter your answers in millions.
X Answer is complete but not entirely correct.
ORANGE INCORPORATED
Trial Balance
At September 26, 2020
(in millions)
Cash
Short-term investments
Accounts receivable
Inventories
Other current assets
Long-term investments
Property, plant, and
equipment, net
Other noncurrent assets
Accounts payable
Accrued expenses
Unearned revenue
Short-term debt
Dividends payable
Long-term debt
Other noncurrent liabilities
Common stock
Additional paid-in-capital
Retained earnings
Totals
Debit
$18,284X
11,313X
17,583
2,124
24,029
131,040X
20,763 X
12,608
$
237,744
Credit
$
30,401
18,579
8,551
6,351X
11,143
29,186X
28,046✔
1X
24,312X
87,977 X
244,547
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