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 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 $15,094 Account Balance Receivables $1,849 10,806 1,377 Other current assets Cash 939 1,004 168 2,190 1,610 Spare parts, supplies, and fuel Other noncurrent liabilities Other current liabilities 515 3,470 2,059 2,732 Additional Paid-in Capital 787 2 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 $4,390 in cash and owed $27,104 on account. b. Purchased new equipment costing $3,554; signed a long-term note. c. Paid $9,064 cash to rent equipment and aircraft, with $4,036 for rent this year and the rest for rent next year. d. Spent $984 cash to repair facilities and equipment during the year. e. Collected $27,885 from customers on account f. Repaid $210 on a long-term note (Ignore Interest). g. Issued 80 million additional shares of $0.10 par value stock for $22 (that's $22 million). h. Paid employees $10,776 for work during the year. 1. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $8,364 cash. J. Used $6,750 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $904 on accounts payable. I. Ordered $100 In spare parts and supplies. P3-6 Part 3 3. Prepare an unadjusted Income statement for the current year ended May 31. StateEx Income Statement (unadjusted) (in millions) 0