Question

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). $ 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 1 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):

Answer 1

Required: Journal entries:

Transaction	General Journal	Debit	Credit
a	Cash	$18,304
	Long-term debt		$18,304
b	Long-term Investment (24,500 * 1/5)	$4,900
	Short-term investment (24,500 * 4/5)	$19,600
	Cash		$24,500
c	Property, plant and equipment	$11,058
	Cash		$9,610
	Short-term notes payable		$1,448
d	Cash	$1,507
	Common stock		$1
	Additional paid-in capital		$1,506
e	Cash	$19,045
	Short-term investment		$19,045
f	Dividend	$11,163
	Dividend payable		$11,163