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) Balance $15,294 Account Balance Receivables $1,899 Retained earnings 11,006 Accounts payable 1,397 Other current assets Cash 949 1,024 Prepaid expenses 178 Accrued expenses payable 2,210 Spare parts, supplies, and fuel Other noncurrent liabilities 536 3,500 Long-term notes payable 1,630 Other current liabilities 2,079 Other noncurrent assets 2,762 Additional Paid-in Capital 817 Common stock ($0.10 par value) 3 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 $4,890 in cash and owed $27,904 on account. b. Purchased new equipment costing $3,574; signed a long-term note. c. Paid $9,264 cash to rent equipment and aircraft, with $4,186 for rent this year and the rest for rent next year. d. Spent $1,004 cash to repair facilities and equipment during the year. e. Collected $28,485 from customers on account. f. Repaid $220 on a long-term note (ignore interest). g. Issued 90 million additional shares of $0.10 par value stock for $23 (that's $23 million). h. Paid employees $11,026 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $8,664 cash. ACCOURE Property and equipment (net) Account $15,294 Receivables $1,899 Retained earnings Accounts payable 11,006 Other current assets 949 1,397 Cash 1,024 Prepaid expenses 178 Spare parts, supplies, and fuel 536 Accrued expenses payable 2,210 Long-term notes payable 1,630 Other noncurrent liabilities Other current liabilities 3,500 2,079 Other noncurrent assets 2,762 Additional Paid-in Capital 817 Common stock ($0.10 par value) 3 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 $4,890 in cash and owed $27,904 on account. b. Purchased new equipment costing $3,574; signed a long-term note. c. Paid $9,264 cash to rent equipment and aircraft, with $4,186 for rent this year and the rest for rent next year. d. Spent $1,004 cash to repair facilities and equipment during the year. e. Collected $28,485 from customers on account. f. Repaid $220 on a long-term note (ignore interest). g. Issued 90 million additional shares of $0.10 par value stock for $23 (that's $23 million). h. Paid employees $11,026 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $8,664 cash. j. Used $6,800 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $924 on accounts payable. 1. Ordered $102 in spare parts and supplies. 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.) Beg bal Cash Beg. bal End. bal. Racervables End, bal Spare Parts, Supplies, and Fuel: Prepaid Expenses Beg bal Beg bal ind. bal O End bal Other Current Assets Property and Equipment (net) Beg tal Beg bal End bat End bal Other Noncurrent Assets Adcounts Payable Beg. bal. Beg bal. End. bal. End. bal. Accrued Expenses Payable Other Current Liabilities Beg. bal Beg. bal. 0 End. bal. 0 End. bal. 0 Long-Term Notes Payable Other Noncurrent Liabilities Beg. bal Beg. bal. End. bal. Common Stock Beg. bal End bal End. ba Additional Paid-in Capital Beg. bal 0 End. bal. 0 Retained Eamings Delivery Service Revenue eg. bal. Beg. bal. nd. bal. Rent Expense Beg. bal. End. bal. 0 Wage Expense Beg, bal. End. bal. 0 End. bal. Repair Expense Beg. bal. End. bal. 0 0 Beg. ba Spare Parts, Supplies, and Fuel Expense End. bal. 0 3. Prepare an unadjusted income statement for the current year ended May 31. StateEx Income Statement (unadjusted) (in millions) 0