Homework SourseStarfruit Inc headquartered in Ridgway Colorado designs manu
Starfruit Inc., headquartered in Ridgway, Colorado, 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 Starfruit\'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, 2015):
Borrowed $18,302 from banks due in two years.
Purchased additional investments for $24,300 cash; one-fifth were long term and the rest were short term.
Purchased property, plant, and equipment; paid $9,608 in cash and signed a short-term note for $1,445.
Issued additional shares of common stock for $1,505 in cash; total par value was $1 and the rest was in excess of par value.
Sold short-term investments costing $19,043 for $19,043 cash.
Declared $11,160 in dividends to be paid at the beginning of the next fiscal year.
a) Create T-accounts for each balance sheet account. Post each transaction to the appropriate T-accounts
b) Prepare a balance sheet from the T-account ending balances for Starfruit at September 26, 2015, based on these transactions.
| STARFRUIT INC. CONSOLIDATED BALANCE SHEET September 27, 2014 (dollars in millions) | |||
| ASSETS | |||
| Current assets: | |||
| Cash | $ | 14,034 | |
| Short-term investments | 11,385 | ||
| Accounts receivable | 17,693 | ||
| Inventories | 2,135 | ||
| Other current assets | 24,152 | ||
| Total current assets | 69,399 | ||
| Long-term investments | 131,812 | ||
| Property, plant, and equipment, net | 20,886 | ||
| Other noncurrent assets | 12,684 | ||
| Total assets | $ | 234,781 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| Current Liabilities: | |||
| Accounts payable | $ | 30,582 | |
| Accrued expenses | 18,691 | ||
| Unearned revenue | 8,605 | ||
| Short-term notes payable | 6,389 | ||
| Total current liabilities | 64,267 | ||
| Long-term debt | 29,363 | ||
| Other noncurrent liabilities | 28,214 | ||
| Total liabilities | 121,844 | ||
| Stockholders’ equity: | |||
| Common stock ($0.00001 per value) | 1 | ||
| Additional paid-in capital | 25,412 | ||
| Retained earnings | 87,524 | ||
| Total stockholders’ equity | 112,937 | ||
| Total liabilities and shareholders\' equity | $ | 234,781 | |
Solution
T accounts:
| STARFRUIT INC. | |||
| CONSOLIDATED BALANCE SHEET | |||
| September 26, 2015 | |||
| (dollars in millions) | |||
| ASSETS | |||
| Current assets: | |||
| Cash | $ | 18,976 | |
| Short-term investments | 11,782 | ||
| Accounts receivable | 17,693 | ||
| Inventories | 2,135 | ||
| Other current assets | 24,152 | ||
| Total current assets | 74,738 | ||
| Long-term investments | 1,36,672 | ||
| Property, plant, and equipment, net | 31,939 | ||
| Other noncurrent assets | 12,684 | ||
| Total assets | $ | 2,56,033 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| Current Liabilities: | |||
| Accounts payable | $ | 30,582 | |
| Accrued expenses | 18,691 | ||
| Unearned revenue | 8,605 | ||
| Dividends payable | 11,160 | ||
| Short-term notes payable | 7,834 | ||
| Total current liabilities | 76,872 | ||
| Long-term debt | 47,665 | ||
| Other noncurrent liabilities | 28,214 | ||
| Total liabilities | 1,52,751 | ||
| Stockholders’ equity: | |||
| Common stock ($0.00001 per value) | 2 | ||
| Additional paid-in capital | 26,916 | ||
| Retained earnings | 76,364 | ||
| Total stockholders’ equity | 1,03,282 | ||
| Total liabilities and shareholders\' equity | $ | 2,56,033 |
