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 $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 (a prepaid expense). 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). g. Issued 200 million additional shares of $0.01 par value stock for $29 (that's $29 million). h. Paid employees $12,526 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $10,464 cash. j. Used $7,100 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,044 on accounts payable. I. Ordered $114 in spare parts and supplies. letter. Required 3>