Lowe’s Companies, Inc., operates more than 1,700 home improvement retail stores in 50 states and Canada. A condensed income statement from its annual report for the nine months ending October 28, 2011, showed the following actual numbers and nomenclature ($ in millions):

1. Prepare four summary journal entries for the given data. Label your entries a through d. Omit explanations. For simplicity, assume that all transactions except for cost of sales were for cash.

2. Post to T-accounts in a ledger for all affected accounts. Key your postings by transaction letter.

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Net sales $38,579 Expenses Cost of sales Selling, general, and administrative expenses Other expenses Total costs and expenses $25,208 9,583 2,271 37,062 Pretax earnings $ 1,517