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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

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):

AccountBalance
AccountBalance
Property and equipment (net)$18,694
Receivables$2,749
Retained earnings
14,406
Other current assets
1,119
Accounts payable
1,737
Cash
1,364
Prepaid expenses
348
Spare parts, supplies, and fuel
878
Accrued expenses payable
2,550
Other noncurrent liabilities
4,010
Long-term notes payable
1,970
Other current liabilities
2,419
Other noncurrent assets
3,272
Additional Paid-in Capital
1,327
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):

  • Provided delivery service to customers, who paid $13,390 in cash and owed $41,504 on account.
  • Purchased new equipment costing $3,914; signed a long-term note.
  • Paid $12,664 cash to rent equipment and aircraft, with $6,736 for rent this year and the rest for rent next year.
  • Spent $1,344 cash to repair facilities and equipment during the year.
  • Collected $38,685 from customers on account.
  • Repaid $390 on a long-term note (ignore interest).
  • Issued 260 million additional shares of $0.10 par value stock for $40 (that’s $40 million).
  • Paid employees $15,276 for work during the year.
  • Purchased spare parts, supplies, and fuel for the aircraft and equipment for $13,764 cash.
  • Used $7,650 in spare parts, supplies, and fuel for the aircraft and equipment during the year.
  • Paid $1,264 on accounts payable.
  • Ordered $136 in spare parts and supplies.

Required:

Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter amounts in millions, not dollars.)

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