3. Prepare an unadjusted income statement for the current year ended May 31.

P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 3-5, 3-6 (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 $ 15,894 11,606 1,457 208 2,270 1,690 2,852 1 Account Receivables Other current assets Cash Spare parts, supplies, and fuel Other noncurrent liabilities Other current liabilities Additional Paid-in Capital Balance $ 2,049 979 1,084 594 3,590 2,139 907 These accounts are not necessarily in good order and have normal debit or 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 $6,390 in cash and owed $30,304 on account. b. Purchased new equipment costing $3,634; signed a long-term note. c. Paid $9,864 cash to rent equipment and aircraft, with $4,636 for rent this year and the rest for rent next year. d. Spent $1,064 cash to repair facilities and equipment during the year. e. Collected $30,285 from customers on account. f. Repaid $250 on a long-term note (ignore interest). g. Issued 120 million additional shares of $0.10 par value stock for $26 (that's $26 million). h. Paid employees $11,776 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $9,564 cash. j. Used $6,950 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $984 on accounts payable. I. Ordered $108 in spare parts and supplies