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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 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) $17,094 Receivables $2,349
Retained earnings 12,806 Other current assets 1,039
Accounts payable 1,577 Cash 1,204
Prepaid expenses 268 Spare parts, supplies, and fuel 715
Accrued expenses payable 2,390 Other non-current liabilities 3,770
Long-term notes payable 1,810 Other current liabilities 2,259
Other non-current assets 3,032 Additional Paid-in Capital 1,087
Common stock ($0.01 par value)2
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 $9,390 in cash and owed $35,104 on account.
Purchased new equipment costing $3,754; signed a long-term note.
Paid $11,064 cash to rent equipment and aircraft, with $5,536 for rent this year and the rest for rent next year (a prepaid expense).
Spent $1,184 cash to repair facilities and equipment during the year.
Collected $33,885 from customers on account.
Repaid $310 on a long-term note (ignore interest).
Issued 200 million additional shares of $0.01 par value stock for $32(thats $32 million).
Paid employees $13,276 for work during the year.
Purchased spare parts, supplies, and fuel for the aircraft and equipment for $11,364 cash.
Used $7,250 in spare parts, supplies, and fuel for the aircraft and equipment during the year.
Paid $1,104 on accounts payable.
Ordered $120 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.

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