1. Prepare journal entries for each transaction.

Required information (The following information applies to the questions displayed below.) Following are account balances (in millions of dollars) from a recent StateEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year): Account Property and equipment (net) Retained earnings Accounts payable Prepaid expenses Accrued expenses payable Long-term notes payable Other noncurrent assets Common stock ($0.10 par value) Balance $ 18,894 14, 606 1,757 358 2,570 1,990 3, 302 Account Receivables Other current annets Cash Spare parts, supplies, and fuel Other noncurrent liabilities Other current liabilities Additional Paid-in Capital Balance $ 2,799 1,129 1,384 894 4,040 2,439 1,357 1 These accounts are not necessarily in good order and have normal debitor credit balances. Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning June 1 (the current year): a. Provided delivery service to customers, who paid $13,890 in cash and owed $42,304 on account b. Purchased new equipment costing $3,934; signed a long-term note. c. Paid $12,864 cash to rent equipment and aircraft, with $6,886 for rent this year and the rest for rent next year. d. Spent $1,364 cash to repair facilities and equipment during the year. e. Collected $39,285 from customers on account f. Repaid $400 on a long-term note (ignore interest). g. Issued 270 million additional shares of $0.10 par value stock for $41 (that's $41 million). h. Paid employees $15,526 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $14,064 cash. j. Used $7,700 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,284 on accounts payable. 1. Ordered $138 in spare parts and supplies