Analyzing the Effects of Transactions Using T-Accounts, Preparing Financial Statements, and Evaluating the Total Asset Turnover Ratio (AP3-6) Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31, 2011: . Click 360 Account Balance Account Balance Property and equipment (net) $8,362 Contributed capital $ 492 Retained earnings 5,827 Receivables 1,162 Accounts payable 835 Other current assets 1.196 Prepaid expenses Cash Accrued expenses payable 1.675 Spare parts, supplies, and fuel 294 Long-term notes payable 667 Other noncurrent liabilities 3,513 Other noncurrent assets Other current liabilities 297 These accounts are not necessarily in good order and have normal debitor credit balances. Assume the following transactions (in millions of dollars) occurred the next year ending May 31, 2012: a. Provided delivery service to customers, receiving $4.567 in accounts receivable and $17.600 in cash. b. Purchased new equipment costing $1,345; signed a long-term note. e Paid S4.598 cash to rent equipment and aircraft, with $3.067 for rental this year and the rest for rent next year. d. Spent $1,348 cash to maintain and repair facilities and equipment during the year. Collected $4.824 from customers on account Repaid $18 on a long-term note (ignore interest). Issued additional stock for $16. h. Paid employees $10,031 during the year. Purchased for cash and used $5,348 in fuel for the aircraft and equipment during the year 1 Paid S784 on accounts payable. L. Ordered $72 in spare parts and supplies. H/w: Recording Journal Entries and Identifying ash Flow Effects Cedar Fair, L.P. (Limited Partnership) is one of the largest regional amusement park operators in the world, owning 12 amusement parks, five outdoor water parks, one indoor water park, and six hotels. The parks include Cedar Point in Ohio, Valleyfair near Minneapolis/St. Paul, Dorney Park and Wildwater Kingdom near Allentown, Pennsylvania, Worlds of Fun/Oceans of Fun in Kansas City, Great America in Santa Clara, California, and Canada's Wonderland near Toronto, Canada, among others. The following are summarized transactions similar to those that occurred in a recent year (assume 2011). Dollars are in thousands: a. Guests at the parks paid $566,266 cash in admissions b. The primary operating expenses (such as employee wages, utilities, and repairs and maintenance on buildings and equipment for the year were $450,967, with $412,200 paid in cash and the rest on account. c. Cedar Fair paid $58,962 principal on notes payable. d. The parks sell food and merchandise and operate games. The cash received during the year for these combined activities was $335.917. The cost of merchandise sold during the year was $90,626. . Cedar Fair purchased and built additional buildings, rides, and equipment during the year, paying $83,841 in cash. s. Guests may stay in the parks at accommodations owned by the company. During the year, accom- modations revenue was $74,049, $72.910 was paid by the guests in cash and the rest was owed on account. & Interest paid on long-term debt was $125.838. h. The company purchased S146,100 in food and merchandise inventory for the year, paying $118.000 in cash and owing the rest on account. 1. The selling general, and administrative expenses, such as the president's salary and advertising for the parks, were $131.882 for the year and were classified as operating expenses, S125,500 was paid in cash, and the rest was owed on account. ). Cedar Hair paid $9.600 on accounts payable during the year. Required: 1. For each of these transactions, record journal entries. Use the letter of each transaction as its refer ence. Note that transaction () will require two entries, one for revenue recognition and one for the related expense