Leavenocellsblankifnoentryisrequiredselectnoeffectsint

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Unformatted text preview: unt, amount, and direc tion of the effec t on the ac c ounting equation. Chec k that the ac c ounting equation remains in balanc e after eac h trans ac tion. (Leave no cells blank. If no entry is required, select "No effects" in the account fieldand z ero (0) in the am ount field.) Ev ent a. b. c. d. e. f. As s ets Building + 211.7 Equipment + 31.5 Cas h ­44.0 Cas h + 187.2 No effec ts 0 Short­term inv es tments + 2,909.2 Cas h ­2,909.2 No effec ts 0 Cas h + 2,400.0 Short­term inv es tments ­2,400.0 = Notes pay able No effec ts No effec ts No effec ts Div idends pay able No effec ts No effec ts No effec ts No effec ts No effec ts Liabilities + 199.2 0 0 0 + 121.1 0 0 0 0 0 + Stoc k holders ’ Equity No effec ts 0 No effec ts 0 No effec ts 0 Contributed c apital + 187.2 Retained earnings ­121.1 No effec ts 0 No effec ts 0 No effec ts 0 No effec ts 0 No effec ts 0 P2-5 Recording T ransactions, Preparing Journal Entries, Posting to T -Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2, 4, 5 [The following information applies to the questions displayed below.] Dell Inc ., headquartered in Aus tin, Tex as , is the global leader in s elling c omputer produc ts and s erv ic es . The following is Dell’s (s implified) balanc e s heet from a rec ent y ear. DELL INC. Balanc e Sheet at J anuary 30, 2009 (dollars in millions ) ASSETS Current as s ets Cas h Short­term inv es tments Rec eiv ables and other as s ets Inv entories Other c urrent as s ets Nonc urrent as s ets Property , plant, and equipment Long­term inv es tments Other nonc urrent as s ets Total as s ets LIABILITIES AND STOCKHOLDERS’ EQUITY $ 8,432 800 6,543 872 3,769 Current Liabilities Ac c ounts pay able Other s hort­term obligations Long­term liabilities Stockholders’ equity Contributed c apital Retained earnings Other s toc k holders ’ equity items Total s toc k holders ’ equity and liabilities $ 8,269 6,620 20,416 2,287 464 3,678 $ 26,845 14,889 7,450 11,219 21,041 (27,754) $ 26,845 As s ume that the following trans ac tions (in millions of dollars ) oc c urred during the remainder of 2009 (ending on J anuary 29, 2010): a. Borrowed $50 from bank s due in two y ears . b. Lent $200 to affiliates , who s igned a s ix ­month note. c . Purc has ed additional inv es tments for $12,300 c as h; one­fifth were long term and the res t were s hort term. d. Purc has ed property , plant, and equipment; paid $865 in c as h and $1,330 with additional long­term bank loans . e. Is s ued additional s hares of s toc k for $260 in c as h. f. Sold s hort­term inv es tments c os ting $9,200 for $9,200 c as h. g. Dell does not ac tually pay div idends ; it reinv es ts its earnings into the c ompany for growth purpos es . As s ume ins tead for this problem that Dell dec lared and paid $47 in div idends during 2009. The ev ents might not hav e oc c urred in c hronologic al order. Section Break P2­5 Recording Transactions, Preparing Journal Entries, Posting to T­Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2, 4, 5 2. awar...
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