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).
Assume that the following transactions (in millions) occurred during the next fiscal year (ending
on September 26, 2020):
a.Borrowed $18,304 from banks due in two years.
b.Purchased additional investments for $24,500 cash; one-fifth were long term and the rest were
short term.
c.Purchased property, plant, and equipment; paid $9,610 in cash and signed a short-term note for
$1,448.
Issued additional shares of common stock for $1,507 in cash; total par value was $1 and the rest
was in excess of par value.
e.Sold short-term investments costing $19,045 for $19,045 cash.
f.Declared $11,163 in dividends to be paid at the beginning of the next fiscal year.
Q:
1. Prepare a journal entry for each transaction
2.. Post each transaction to the appropriate T-accounts.
3.Prepare a trial balance at September 26, 2020.
4.Prepare a classified balance sheet for Orange at September 26, 2020, based on these
transactions.
ORANGE INCORPORATEDCONSOLIDATED BALANCE SHEETSeptember 28,
2019(dollars in millions)ASSETSCurrent assets:Cash$14,054Short-term
investments11,401Accounts receivable17,718Inventories2,138Other current assets24,186Total
current assets69,497Long-term investments131,998Property, plant, and equipment,
net20,915Other noncurrent assets12,702Total assets$235,112LIABILITIES AND
STOCKHOLDERS EQUITYCurrent Liabilities:Accounts payable$30,625Accrued
expenses18,717Unearned revenue8,617Short-term debt6,398Total current liabilities64,357Long-
term debt29,404Other noncurrent liabilities28,253Total liabilities122,014Stockholders
equity:Common stock ($0.00001 par value)1Additional paid-in capital25,512Retained
earnings87,585Total stockholders equity113,098Total liabilities and shareholders'
equity$235,112.
Orange Incorporated, headquartered in Cupertino, California, designs.pdf
1. 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).
Assume that the following transactions (in millions) occurred during the next fiscal year (ending
on September 26, 2020):
a.Borrowed $18,304 from banks due in two years.
b.Purchased additional investments for $24,500 cash; one-fifth were long term and the rest were
short term.
c.Purchased property, plant, and equipment; paid $9,610 in cash and signed a short-term note for
$1,448.
Issued additional shares of common stock for $1,507 in cash; total par value was $1 and the rest
was in excess of par value.
e.Sold short-term investments costing $19,045 for $19,045 cash.
f.Declared $11,163 in dividends to be paid at the beginning of the next fiscal year.
Q:
1. Prepare a journal entry for each transaction
2.. Post each transaction to the appropriate T-accounts.
3.Prepare a trial balance at September 26, 2020.
4.Prepare a classified balance sheet for Orange at September 26, 2020, based on these
transactions.
ORANGE INCORPORATEDCONSOLIDATED BALANCE SHEETSeptember 28,
2019(dollars in millions)ASSETSCurrent assets:Cash$14,054Short-term
investments11,401Accounts receivable17,718Inventories2,138Other current assets24,186Total
current assets69,497Long-term investments131,998Property, plant, and equipment,
net20,915Other noncurrent assets12,702Total assets$235,112LIABILITIES AND
STOCKHOLDERS EQUITYCurrent Liabilities:Accounts payable$30,625Accrued
expenses18,717Unearned revenue8,617Short-term debt6,398Total current liabilities64,357Long-
term debt29,404Other noncurrent liabilities28,253Total liabilities122,014Stockholders
equity:Common stock ($0.00001 par value)1Additional paid-in capital25,512Retained
earnings87,585Total stockholders equity113,098Total liabilities and shareholders'
equity$235,112
