Account Property and equipment (net) Balance Account Balance $16,694 Receivables $2,249 Retained earnings 12,406 Other current assets 1,019 Accounts payable 1,537 Cash 1,164 Prepaid expenses 248 Spare parts, supplies, 678 and fuel Other noncurrent Accrued expenses payable 2,350 liabilities 3,710 Long-term notes payable 1,770 Other current liabilities 2,219 Additional Paid-in Other noncurrent assets 2,972 Capital 1,027 Common stock ($0.10 par value) 5 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 $8,390 in cash and owed $33,504 on account. b. Purchased new equipment costing $3,714; signed a long-term note. c. Paid $10,664 cash to rent equipment and aircraft, with $5,236 for rent this year and the rest for rent next year. d. Spent $1,144 cash to repair facilities and equipment during the year. e. Collected $32,685 from customers on account. f. Repaid $290 on a long-term note (ignore interest). g. Issued 160 million additional shares of $0.10 par value stock for $30 (that's $30 million). h. Paid employees $12,776 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $10,764 cash. j. Used $7,150 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,064 on accounts payable. I. Ordered $116 in spare parts and supplies. P3-6 Part 2 2. Prepare T-accounts for the current year from the preceding list; enter the ending balances from May 31 as the respective beginning balances for June 1 of the current year. For each transaction, record the current year's transaction effects in the T-accounts. Label each using the letter of the transaction. (Enter your answers in millions, not in dollars.) Cash Receivables Beg. bal. (a) (e) 1,164 8,390 32,685 Beg. bal. 5,427 (c) ((a) 2,249 33,504 32,685 (e) 5,236 (c) 16 1,144 (d) End. bal. 3,068 4,784 290 (f) 12,776 (h) 10,764 (i) 1,064 (k) End. bal. 10,338 Spare Parts, Supplies, and Fuel Prepaid Expenses Beg. bal. [(0) 678 10,764 7,150) Beg. bal. (c) 248 5,236 End. bal. 4,292 End. bal. 5,484 Other Current Assets Property and Equipment (net) Beg. bal. Beg. bal. 16,694 3,714 End. bal. 0 End. bal. 20,408 Other Noncurrent Assets Accounts Payable Beg. bal. Beg. bal. 1,536 (k) 1,064 End. bal. 0 End. bal. 472 Accrued Expenses Payable Other Current Liabilities Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Long-Term Notes Payable Other Noncurrent Liabilities 290 1,770 3,714 (b) Beg. bal. Beg. bal. (f)