Reference no: EM13508675

Given below is the balance sheet for a company.

                                                Balance Sheet (Millions of Dollars)

Assets
Current Assets
Cash	$5,846
Short-term investments	518
Receivables and other assets	4,510
Inventories	607
Other	2,624
	$14,105
Noncurrent Assets
Property, plant, and equipment	$1,594
Long-term investments	318
Other non-current assets	2,533
Total assets	$18,550
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable	$5,816
Other short-term obligations	4,585
	$10,401
Long-term Liabilities	$5,159
Stockholders' equity
Contributed Capital	$7,832
Retained Earnings	14,690
Other stockholders' equity items	-19,532
Total stockholders' equity and liabilities	$18,550

Assume the following transactions (in millions) during the remainder of the initial year.

(a)  Borrowed $20 from banks due in two years

(b)  Lent $170 to affiliates, who signed a six-month note

(c)  Purchased additional investments for $6,000 cash; one-third were long term and the rest were short-term

(d)  Purchased $1820 worth of property, plant, and equipment; paid $600 in cash and the remainder with additional long-term bank loans

(e)  Issued additional shares of stock for $400 in cash

(f)   Sold short-term investments costing $3,000 for $3,000 cash

(g)  Declared and paid $13 in dividends during Year 1

Prepare a journal entry for each transaction. Then create T-accounts for each balance sheet account and include the new transactions. Post each journey entry to the appropriate T-accounts. Finally, create an updated balance sheet.