For the question A, I cannot understand why the value of investment were divided into...
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Accounting
For the question A, I cannot understand why the value of investment were divided into short and long term. And how can I know these value
Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018):
- Borrowed $18,279 from banks due in two years.
- Purchased additional investments for $22,200 cash; one-fifth were long term and the rest were short term.
- Purchased property, plant, and equipment; paid $9,584 in cash and signed a short-term note for $1,422.
- Issued additional shares of common stock for $1,481 in cash; total par value was $1 and the rest was in excess of par value.
- Sold short-term investments costing $19,021 for $19,021 cash.
- Declared $11,138 in dividends to be paid at the beginning of the next fiscal year.
1. Prepare a journal entry for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions.)
2. Post each transaction to the appropriate T-accounts (Enter your answers in millions.)
3. Prepare a trial balance for the period ended September 29, 2018. (Enter your answers in millions.)
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