Eollowing are selected account balances (in millions of dollars) from a recent UPS annual report, followed by several typical iransactions. Assume that the following are account balances on December 31 (end of the prior fiscal year): These accounts are not necessarily in good order and have normal debit or credit balances: (Note: Because these are not all of UPS: accounts, these will not balance in a trial balance) Assume the following transactions (in millions, except for par value) occurred the; next fiscal year beginning January 1 (the current yeor): a. Provided delivery service to customers, who paid $7,890 in cash and owed $32,704 on account: b. Purchased new equipment costing $3,694; signed a long-term note c. Paid $10,464 cash to rent equipment and aircraft, with $5,086 for rent this year and the rest for rent hext year (a prepaid expense) d Spent $1,124 cash to repair facilities and equipment during the year. e. Collected \$32.085 trom customers on account. 1. Repaid $280 on a lonq-term note (ignore interest). 1. Repaid $280 on a Iong-term note (ignore interest). g. Issued 200 million additional shares of $0.01 par value stock for $29 (that's $29 million). h. Paid employees $12,526 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $10,464 cash. 1. Used $7,100 in spare parts, supplies, and fuel for the aircraft and equipment during the year k. Paid $1.044 on accounts payable. I. Ordered $114 in spare parts and supplies: Required: 1. Prepare journal entries for each transaction. 2. Enter the ending balances from December 31 as the respective beginning balances for January 1 of the current year. Record in the T-accounts the effects of each transaction. Label each using the letter of the transaction. 3. Prepare an unadjusted income statement for the current year ended December 31 . 4. Compute the combany's net profit margin ratio fo the current year ended December 31 Complete this question by entering your answers in the tabs below. repare journal entries for each transaction. lote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. En nillions, not dollars. Journal entry worksheet 57812> Provided delivery service to customers, who paid $7,890 in cash and owed $32,704 on acdount. Note: Enter debits before credits. Enter the ending balances from December 31 as the respective beginning balances for January 1 of the current year, Record in the T-account * transaction. Label each using the letter of the transaction. Note: Enter your answers in millions, not in dollars. UPS Income Statement (unadjusted) (in millions) Compute the company's net profit margin ratio for the current year ended Decembe Note: Round your percentage answer to 1 decimal place (i.e., 32.1)
