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.] Account Property and equipment (net) 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 $16,494 Account Balance Receivables $2,199 Retained earnings 12,206 Accounts payable 1,517 Other current assets Cash 1,009 1,144 Prepaid expenses Accrued expenses payable 238 2,330 Long-term notes payable Spare parts, supplies, and fuel Other noncurrent liabilities 1,750 Other current liabilities 657 3,680 2,199 Other noncurrent assets 2,942 Additional Paid-in Capital 997 Common stock ($0.10 par value) 4 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 $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. 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 150 million additional shares of $0.10 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. Ordered $114 in snare narts and sunnlies