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 Property, plant, and equipment (net) Retained earnings Accounts payable Prepaid expenses Accrued expenses payable Long-tere notes payable Other non-current assets Common stock ($0.01 par value) Balance Account $15,494 Receivables 11,206 Other current assets 1,417 Cash 188 Spare parts, supplies, and fuel 2,230 Other non-current liabilities 1,650 Other current liabilities 2,792 Additional Paid-in Capital 4 Balance $1,949 959 1,044 557 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): f. Repaid $230 on a long-term note (ignore interest). g. Issued 200 million additional shares of $0.01 par value stock for $24 (that's $24 million). 3,530 2,099 847 a. Provided delivery service to customers, who paid $5,390 in cash and owed $28,704 on account. b. Purchased new equipment costing $3,594; signed a long-term note. c. Paid $9,464 cash to rent equipment and aircraft, with $4,336 for rent this year and the rest for rent next year (a prepaid expense). d. Spent $1,024 cash to repair facilities and equipment during the year. e. Collected $29,085 from customers on account. h. Paid employees $11,276 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $8,964 cash. J. Used $6,850 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Pald $944 on accounts payable. Ordered $104 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 unadjusted income statement for the current year ended December 31. 4. Compute the company's net profit margin ratio for the current year ended December 31 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 Property, plant, and equipment (net) Retained earnings Accounts payable Prepaid expenses Accrued expenses payable Long-tere notes payable Other non-current assets Common stock ($0.01 par value) Balance Account $15,494 Receivables 11,206 Other current assets 1,417 Cash 188 Spare parts, supplies, and fuel 2,230 Other non-current liabilities 1,650 Other current liabilities 2,792 Additional Paid-in Capital 4 Balance $1,949 959 1,044 557 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): f. Repaid $230 on a long-term note (ignore interest). g. Issued 200 million additional shares of $0.01 par value stock for $24 (that's $24 million). 3,530 2,099 847 a. Provided delivery service to customers, who paid $5,390 in cash and owed $28,704 on account. b. Purchased new equipment costing $3,594; signed a long-term note. c. Paid $9,464 cash to rent equipment and aircraft, with $4,336 for rent this year and the rest for rent next year (a prepaid expense). d. Spent $1,024 cash to repair facilities and equipment during the year. e. Collected $29,085 from customers on account. h. Paid employees $11,276 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $8,964 cash. J. Used $6,850 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Pald $944 on accounts payable. Ordered $104 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 unadjusted income statement for the current year ended December 31. 4. Compute the company's net profit margin ratio for the current year ended December 31