Question

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.) Mango Inc., headquartered in Cupertino, California, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players and sells a variety of related software and services. The following is Mango's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September). MANGO INC. CONSOLIDATED BALANCE SHEET September 30, 2017 (dollars in millions) ASSETS Current assets: Cash $ 14,024 Short-term investments 11,377 Accounts receivable 17,681 Inventories 2,134 Other current assets 24,141 Total current assets 69,357 Long-term investments 131,732 Property, plant, and equipment, net 20,873 Other noncurrent assets 12,676 Total assets $ 234,638 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 30,563 Accrued expenses 18,679 Unearned revenue 8,599 Short-term notes payable 6,385 Total current liabilities 64,226 Long-term debt 29,344 Other noncurrent liabilities 28, 196 Total liabilities 121,766 Stockholders' equity: Common stock (50.60001 per value) 1 Additional paid-in capital 25,212 Retained earnings 87.659 Total stockholders' equity 112,872 Total liabilities and shareholders' equity $234,638

Answer 1

MANGO INC.
JOURNAL
Date	Particulars	LF	Debit	Credit
a	Cash Account		Dr		18,299
	To	Borrowings from bank				18,299
	(Being cash borrowed from bank)
b	Short term Investments Account	Dr		19,280
	Long term Investments Account	Dr		4,820
	To	Cash Account				24,100
	(Being investments - short term and long term
	purchased)
c	Property, plant and equipment	Dr		11,048
	To	Cash Account				9,605
	To	Short-term note payable				1,443
	(Being purchase of property, plant and equipment)
d	Cash Account		Dr		1,503
	To	Common Stock				1
	To	Additional paid-in-capital				1,502
e	Cash Account		Dr		19,040
	To	Short term Investments Account			19,040
	(Being short-term investments sold for cash)
f	Retained Earnings Account	Dr		11,158
	To	Dividend payable account				11,158
	(Being dividend for shareholders declared)