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):

AccountBalanceAccountBalanceProperty, plant, and equipment (net)$30,482Receivables$9,552Retained earnings9,105Other current assets809Accounts payable5,555Cash5,238Prepaid expenses108Spare parts, supplies, and fuel511Accrued expenses payable2,552Other non-current liabilities1,437Long-term notes payable21,320Other current liabilities1,641Other non-current assets1,082Additional Paid-in Capital150Common stock ($0.01 par value)9

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 $1,390 in cash and owed $24,704 on account.

Purchased new equipment costing $3,434; signed a long-term note.

Paid $7,864 cash to rent equipment and aircraft, with $3,136 for rent this year and the rest for rent next year (a prepaid expense).

Spent $864 cash to repair facilities and equipment during the year.

Collected $24,285 from customers on account.

Repaid $150 on a long-term note (ignore interest).

Issued 200 million additional shares of $0.01 par value stock for $16 (thats $16 million).

Paid employees $9,276 for work during the year.

Purchased spare parts, supplies, and fuel for the aircraft and equipment for$6,564cash.

Used $6,450 in spare parts, supplies, and fuel for the aircraft and equipment during the year.

Paid $784 on accounts payable.

Ordered $88 in spare parts and supplies.

Required:

1. Prepare journal entries for each transaction.
2. 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.
3. Prepare an unadjustedincome statement for the current year ended December 31.
4. Compute the company's net profit margin ratio for the current year ended December 31.

Enter the ending balances from December 31 as the respective beginning balances for January 1 of the current year. Record in the T-acc transaction. Label each using the letter of the transaction. Note: Enter your answers in millions, not in dollars