Following are selected account balances $($in millions of dollars$)$ from a recent UPS annual report, followed by several typical transactions. Assume that the following are account balances on December $31($end of the prior fiscal year$)$:

Account Balance Account Balance

Property, plant, and equipment $($net$)$ $$18,494$ Receivables $$2,699$

Retained earnings $14,206$ Other current assets $1,109$

Accounts payable $1,717$ Cash $1,344$

Prepaid expenses $338$ Spare parts, supplies, and fuel $857$

Accrued expenses payable $2,530$ Other non$-$current liabilities $3,980$

Long$-$term notes payable $1,950$ Other current liabilities $2,399$

Other non$-$current assets $3,242$ Additional Paid$-$in Capital $1,297$

Common stock $($$$0\mathrm{.}01$ par value$)4$

These accounts are not necessarily in good order and have normal debit or credit balances. $($Note: Because these are not all of UPS's 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 year$)$:

Provided delivery service to customers, who paid $$12,890$ in cash and owed $$40,704$ on account.

Purchased new equipment costing $$3,894$; signed a long$-$term note.

Paid $$12,464$ cash to rent equipment and aircraft, with $$6,586$ for rent this year and the rest for rent next year $($a prepaid expense$).$

Spent $$1,324$ cash to repair facilities and equipment during the year.

Collected $$38,085$ from customers on account.

Repaid $$380$ on a long$-$term note $($ignore interest$).$

Issued $200$ million additional shares of $$0\mathrm{.}01$ par value stock for $$39($that$$s $$39$ million$).$

Paid employees $$15,026$ for work during the year.

Purchased spare parts, supplies, and fuel for the aircraft and equipment for $$13,464$ cash.

Used $$7,600$ in spare parts, supplies, and fuel for the aircraft and equipment during the year.

Paid $$1,244$ on accounts payable.

Ordered $$134$ in spare parts and supplies.

Required:

Prepare journal entries for each transaction.

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.

Prepare an unadjusted income statement for the current year ended December $31.$

Compute the company's net profit margin ratio for the current year ended December $31.$Prepare an unadjusted income statement for the current year ended December $31.$

Note: Enter your answers in millions, not in dollars.