Question

following is Mango's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September). $ 14,054 11,401 17,718 2,138 24,186 69,497 131,998 20,915 12,702 $ 235, 112 MANGO INC. CONSOLIDATED BALANCE SHEET September 30, 2017 (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 notes payable Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock ($0.00001 per value) Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and shareholders' equity $ 30,625 18,717 8,617 6,398 64,357 29,404 28, 253 122,014 25,512 87,585 113,098 $ 235, 112 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): 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. d. 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.

Answer 1

Mango Inc. Journal Enteries Trans. Particulars a. Cash a/c Dr. To Long Term Note Payable (Bank loan) Debit in $ Credit in $ 18304 18304 4900 19600 Long Term Investments a/c Dr. Short Term Investments a/c Dr. To Cash (Investments made) 24500 C. 11058 Property, Plant & Equip a/c Dr. To Cash To Short Term Note Payable (Assets Purchased) 9610 1448 1507 Cash a/c Dr. To Common Stock To Additional Paid in Capital (Common stock for cash) 1506 e. Dr. 19045 Cash a/c To Short Term Investments (Short Term Investments sold) 19045 Dr. 11163 Dividends a/c To Cash (Dividends paid) 11163 g. Dr. 11163 Retained Earnings a/c To Dividends 11163

Balance sheet As at 30.9.2017 Assets Current Assets Amounts in $ Amounts in $ Cash 30625 18717 Short Term Investments Accounts Receivable Inventories Other Current Assets Amounts in $ Amounts in $ Liabilities Current Liabilities 7637 Accounts Payable 11956 Accrued Expenses 17718 Unearned Revenue 2138 Short Term Note Payable 24186 63635 Non Current Liabilities Long Term Note Payable 136898 Other non current liabilities 8617 7846 65805 Non Current Assets Long Term Investments 47708 28253 75961 Property Plant & Equip. Other Non current assets 31973 12702 Stockholders Equity 181573 Common Stock ($0.00001 )par Additional Paid in Capital Retained Earnings 245208 Total Liabilities & equity 27018 76422 103442 245208 Total Assets