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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

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) $15,494 Receivables $1,949
Retained earnings 11,206 Other current assets 959
Accounts payable 1,417 Cash 1,044
Prepaid expenses 188 Spare parts, supplies, and fuel 557
Accrued expenses payable 2,230 Other non-current liabilities 3,530
Long-term notes payable 1,650 Other current liabilities 2,099
Other non-current assets 2,792 Additional Paid-in Capital 847
Common stock ($0.01 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):

  1. Provided delivery service to customers, who paid $5,390 in cash and owed $28,704 on account.
  2. Purchased new PPE costing $3,594; signed a long-term note.
  3. 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).
  4. Spent $1,024 cash to repair facilities and equipment during the year.
  5. Collected $29,085 from customers on account.
  6. Repaid $230 on a long-term note (ignore interest).
  7. Issued 200 million additional shares of $0.01 par value stock for $24 (thats $24 million).
  8. Paid employees $11,276 for work during the year.
  9. Purchased spare parts, supplies, and fuel for the aircraft and equipment for$8,964 cash.
  10. Used $6,850 in spare parts, supplies, and fuel for the aircraft and equipment during the year.
  11. Paid $944 on accounts payable.
  12. Ordered $104 in spare parts and supplies.

Required:

  1. Prepare journal entries for each transaction.
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