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 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): 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): 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. t. Repaid $230 on a long-term note (ignore interest). 9. Issued 200 million additional shares of $0.01 par value stock for $24 (that's $24 million). h. Paid employees $11,276 for work during the year. L. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $8,964 cash. 1. Used $6,850 in spare parts, supplies, and fuel for the aircraft and equipment during the year. 2. Paid $944 on accounts payable. L. Ordered $104 in spare parts and supplies. each transaction. Label each using the letter of the transaction. Note: Enter your answers in millions, not in dollars. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{ Retained Earmings } \\ \hline Debit & \multicolumn{2}{|c|}{ Credit } \\ \hline Beginning balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Ending balance & & 0 & \\ \hline \end{tabular}