Line following information applies to the questions displayed below.] Following are account balances (in millions of dollars) from a recent State Ex annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year): Account Property and equipment (net) Retained earnings Accounts payable Prepaid expenses Accrued expenses payable Long-term notes payable Other noncurrent assets Common stock ($0.10 par value) Balance $ 18,894 14, 606 1,757 358 2,570 1,990 3,302 1 Account Receivables Other current assets Cash Spare parts, supplies, and fuel Other noncurrent liabilities Other current liabilities Additional Paid-in Capital Balance $ 2,799 1,129 1,384 894 4,040 2,439 1,357 These accounts are not necessarily in good order and have normal debit or 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 $13,890 in cash and owed $42,304 on account. b. Purchased new equipment costing $3,934; signed a long-term note. c. Paid $12,864 cash to rent equipment and aircraft, with $6,886 for rent this year and the rest for rent next year. d. Spent $1,364 cash to repair facilities and equipment during the year. e. Collected $39,285 from customers on account. f. Repaid $400 on a long-term note (ignore interest). g. Issued 270 million additional shares of $0.10 par value stock for $41 (that's $41 million). h. Paid employees $15,526 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $14,064 cash. j. Used $7,700 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,284 on accounts payable. 1. Ordered $138 in spare parts and supplies. View transaction list H. EX *** 12 > 1 Provided delivery service to customers, who paid $13,890 in cash and owed $42,304 on account. owed 2 Purchased new equipment costing $3,934; signed a long- term note. 3 Paid $12,864 cash to rent equipment and aircraft, with $6,886 for rent this year and the rest for rent next year. Credit 4 Spent $1,364 cash to repair facilities and equipment during the year. 5 Collected $39,285 from customers on account. 6 Repaid $400 on a long-term note (ignore interest). Note : = journal entry has been entered Record entry Clear entry View general journal Required: 1. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter amounts in millions, not dollars.) View transaction list Journal entry worksheet Provided delivery service to customers, who paid $13,890 in cash and owed $42,304 on account. Note: Enter debits before credits Transaction General Journal Debit Credit a. Record entry Clear entry View general journal View transaction list X 12 > 7 Issued 270 million additional shares of $0.10 par value stock for $41 (that's $41 million). owed 8 Paid employees $15,526 for work during the year. 9 9 Purchased spare parts, supplies, and fuel for the aircraft and equipment for $14,064 cash. Credit 10 Used $7,700 in spare parts, supplies, and fuel for the aircraft and equipment during the year. 11 Paid $1,284 on accounts payable. 12 Ordered $138 in spare parts and supplies. Note : = journal entry has been entered Record entry Clear entry View general journal
