! 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): Account Balance Account Property and equipment (net) $14,694 Receivables Balance $1,749 Retained earnings 10,406 Accounts payable 1,337 Other current assets Cash 919 964 | Prepaid expenses 148 Spare parts, supplies, and fuel 478 Accrued expenses payable 2,150 Other noncurrent liabilities 3,410 | Long-term notes payable 1,570 Other current liabilities Other noncurrent assets 2,672 Additional Paid-in Capital 2,019 727| Common stock ($0.10 par value) 5 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 $3,390 in cash and owed $26,304 on account. b. Purchased new equipment costing $3,514; signed a long-term note. c. Paid $8,664 cash to rent equipment and aircraft, with $3,736 for rent this year and the rest for rent next year. d. Spent $944 cash to repair facilities and equipment during the year. e. Collected $26,685 from customers on account. f. Repaid $190 on a long-term note (ignore interest). g. Issued 60 million additional shares of $0.10 par value stock for $20 (that's $20 million). h. Paid employees $10,276 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $7,764 cash. j. Used $6,650 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $864 on accounts payable. 1. Ordered $96 in spare parts and supplies.