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i just meed the t account for common stock and additional capital Required information P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an
i just meed the t account for common stock and additional capital
Required information P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 3-5, 3-6 (The following information applies to the questions displayed below.) Following are account balances (in millions of dollars) from a recent StateEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year): Account Balance Account Balance Property and equipment (net) $16,494 Receivables $ 2,199 Retained earnings 12,206 Other current assets 1,009 Accounts payable 1,517 Cash 1,144 Prepaid expenses 238 Spare parts, supplies, and fuel 657 Accrued expenses payable 2,330 Other noncurrent liabilities 3,680 Long-term notes payable 1,750 Other current liabilities 2,199 Other noncurrent assets 2,942 Additional Paid-in Capital 997 Common stock ($0.19 par value) 4 These accounts are not necessarily in good order and have normal debitor credit balances. Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning June 1(the current year): a. Provided delivery service to customers, who paid $7,890 in cash and owed $32,704 on account. b. Purchased new equipment costing $3,694; signed a long-term note. c. Paid $10,464 cash to rent equipment and aircraft, with $5,086 for rent this year and the rest for rent next year. d. Spent $1,124 cash to repair facilities and equipment during the year. e. Collected $32,085 from customers on account. f. Repaid $280 on a long-term note (ignore interest). 9. Issued 150 million additional shares of $0.10 par value stock for $29 (that's $29 million). h. Paid employees $12,526 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $10,464 cash. J. Used $7100 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,044 on accounts payable. 1. Ordered $114 in spare parts and supplies. Beg. bal. Beg. bal. 2,199 32,085(e) 1,144 7,890 32,085 29 1,124 (d) 280 (0) 12,526 (h) 10,464 0 1,044(k) 32,704 2,818 End. bal. End. bal. 15,710 Spare Parts, Supplies, and Fuel 657 Prepaid Expenses 238 Beg. bal. Beg. bal. (c) 5,378 End. bal. 657 End. bal. 5,616 Other Current Assets 1,009 Beg. bal. Beg. bal. (b) Property and Equipment (net) 16,494 3,694 End, bal. 1,009 End, bal 20,188 Common Stock Additional Paid-in Capital 997 Beg. bal. 4 Beg. bal. 29 (9) 5 (9) End, bal 33 End, bal. 1,002 Step by Step Solution
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