PLEASE HELP DUE SOON
Required information (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 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 $ 15,494 11,206 1,417 188 Balance $1,949 959 1,044 Account Receivables Other current assets Cash Spare parts, supplies, and fuel Other noncurrent liabilities Other current liabilities Additional Paid-in Capital 557 2,230 1,650 2,792 4 3,530 2,099 847 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 $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. d. Spent $1,024 cash to repair facilities and equipment during the year. e. Collected $29,085 from customers on account. f. Repaid $230 on a long-term note (ignore interest). g. Issued 100 million additional shares of $0.10 par value stock for $24 (that's $24 million). h. Paid employees $11,276 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $8,964 cash. j. Used $6,850 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $944 on accounts payable. 1. Ordered $104 in spare parts and supplies. Answer is not complete. Receivables Cash 1,044 Beg. bal. Beg. bal. (b) x 5,390 X 9,464 (b) 1,024 End. bal. 0 (d) X 29,085 230 (a) End. bal. 24,801 Beg. bal. Spare Parts, Supplies, and Fuel 557 x 8,964 Beg. bal. (c) (a) X Prepaid Expenses 188 9,464 5,316 X (6) 4,336 End. bal. 9,521 End. bal. Other Current Assets Beg. bal. 959 Beg. bal. Property and Equipment (net) 15,494 3,694 X 19,088 X (c) 100 * End. bal. 959 End, bal. Other Noncurrent Assets Accounts Payable 1,417 Beg. bal. 3,530 Beg. bal. (C) x 944 End. bal. 3,530 End. bal. 473 Other Current Liabilities Accrued Expenses Payable 2,230 Beg. bal. Beg. bal. 2,099 End. bal. 2,230 End. bal. 2,099 Other Noncurrent Liabilities Long-Term Notes Payable 1,650 Beg. bal. Beg. bal. 2,099 x End. bal. 1,650 End. bal. 2,099 Common Stock Additional Paid-in Capital Beg. bal. 4 Beg. bal. 847 1 X (a) 23 (c) 5 X (b) End. bal. 0 End. bal. 870 Delivery Service Revenue Retained Earnings 11,206 Beg. bal. Beg. bal. End. bal. 11,206 End. bal. 0 Rent Expense Repair Expense Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Wage Expense Beg. bal. (c) Spare Parts, Supplies, and Fuel Expense Beg. bal. (c) 6,850 11,276 11,276 X End. bal. 0 End. bal. 6,850
