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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 end of the prior fiscal year:
Account Balance Account Balance
Property, plant, and equipment net $ Receivables $
Retained earnings Other current assets
Accounts payable Cash
Prepaid expenses Spare parts, supplies, and fuel
Accrued expenses payable Other noncurrent liabilities
Longterm notes payable Other current liabilities
Other noncurrent assets Additional Paidin Capital
Common stock $ par value
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 the current year:
Provided delivery service to customers, who paid $ in cash and owed $ on account.
Purchased new equipment costing $; signed a longterm note.
Paid $ cash to rent equipment and aircraft, with $ for rent this year and the rest for rent next year a prepaid expense
Spent $ cash to repair facilities and equipment during the year.
Collected $ from customers on account.
Repaid $ on a longterm note ignore interest
Issued million additional shares of $ par value stock for $thats $ million
Paid employees $ for work during the year.
Purchased spare parts, supplies, and fuel for the aircraft and equipment for $ cash.
Used $ in spare parts, supplies, and fuel for the aircraft and equipment during the year.
Paid $ on accounts payable.
Ordered $ in spare parts and supplies.
Required:
Prepare journal entries for each transaction.
Enter the ending balances from December as the respective beginning balances for January of the current year. Record in the Taccounts the effects of each transaction. Label each using the letter of the transaction.
Prepare an unadjusted income statement for the current year ended December
Compute the company's net profit margin ratio for the current year ended December
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