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2014 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); Balance $1,599 889 904 Book 415 Account Property and equipment (net) Retained earnings Accounts payable Prepaid expenses Accrued expenses payable Long-term notes payable Other noncurrent assets Common stock (58.10 par value) Balance Account $14,094 Receivables 9,886 Other current assets 1,277 Cash 118 Spare parts, supplies, and fuel 2,090 Other noncurrent liabilities 1,510 Other current liabilities 2,582 Additional Paid-in Capital 3,320 1,959 637 rint Tences 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 $1,890 in cash and owed $25,104 on account. b. Purchased new equipment costing $3,454; signed a long-term note. c. Paid $8,064 cash to rent equipment and aircraft, with $3,286 for rent this year and the rest for rent next year. d. Spent $884 cash to repair facilities and equipment during the year. e. Collected $24,885 from customers on account. f. Repaid $160 on a long-term note (ignore interest). 9. Issued 30 million additional shares of $0.10 par value stock for $17 (that's $17 million). h. Paid employees $9,526 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $6,864 cash. J. Used $6,500 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k Paid $804 on accounts payable. 1. Ordered $90 in spare parts and supplies. P3-6 Part 2 4 2. Prepare T-accounts for the current year from the preceding list; enter the ending balances from May 31 as the respective beginning balances for June 1 of the current year. For each transaction, record the current year's transaction effects in the T-accounts. Label each using the letter of the transaction. (Enter your answers in millions, not in dollars.) Cash Recelvables Beg bal Beg bal End, bal 0 End, bal 0 Spare Parts. Supplies, and Fuel Prepaid Expenses Beg bal. Beg bal End, bal. End, bal Other Current Assets Property and Equipment (net) Beg. bal Beg bal. End, bal 0 End, bal Other Noncurrent Assets Accounts Payable Bog. bal. Beg. bal Required information Accounts Payablo Other Noncurrent Assets Beg. bal. Beg. bal. End, bal. 0 End. bal Other Current Liabilities Accrued Expenses Payable Beg. bal Beg bal. End, bal End, bal. Other Noncurrent Litias Long-Term Notes Payable Beg bal. Beg bal 5 0 End, bal End. bal Additional Paid-in Capital Common Stock Beg, bal. Beg, bal 0 End, bal 0 End. bal Delivery Service Revenue Retained Earnings Beg bal. Bog, bal 0 End, bal 0 0 End, bal. 0 End. bal. Common Stock Additional Paid-in Capital Beg bal Beg bal. 0 End. bal. Eribal Retained Earnings Delivery Service Revenue Beg. bal. Beg, bal End, bal. 0 End, bal Rent Expense Repair Expense Beg. bal. Beg bal. End, bal. 0 End, bal. Wago Expenso Spare Parts, Supplies, and Fuel Expense Beg, bal Beg, bal End, bal End, bal