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 Account $ 17,094 Receivables 12,806 other current assets 1,577 Cash 268 Spare parts, supplies, and fuel 2,390 Other noncurrent liabilities 1,810 Other current liabilities 3,032 Additional Paid-in Capital 2 Balance $ 2,349 1,039 1, 204 715 3, 770 2,259 1,087 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 $9,390 in cash and owed $35,104 on account b. Purchased new equipment costing $3,754; signed a long-term note. c. Paid $11,064 cash to rent equipment and aircraft, with $5,536 for rent this year and the rest for rent next year. d. Spent $1,184 cash to repair facilities and equipment during the year. e. Collected $33,885 from customers on account. 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 $9,390 in cash and owed $35,104 on account b. Purchased new equipment costing $3,754; signed a long-term note. c. Paid $11,064 cash to rent equipment and aircraft, with $5,536 for rent this year and the rest for rent next year. d. Spent $1,184 cash to repair facilities and equipment during the year. e. Collected $33,885 from customers on account. f. Repaid $310 on a long-term note (ignore interest). g. Issued 180 million additional shares of $0.10 par value stock for $32 (that's $32 million), h. Paid employees $13,276 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $11,364 cash J. Used $7,250 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,104 on accounts payable. 1. Ordered $120 in spare parts and supplies. Required information State Ex Income Statement (unadjusted) For the Year Ended May 31 (Current Year) (in millions) Expenses Rent expense X $ 5,536 X Spare parts, supplies, and fuel expense X 7,250 X Revenues x Cash x 9,390 Accounts receivable X 35,104 Total revenues Net income 44,494 $ 17,248
