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 Balance Account Balance $17,894 Receivables $2,549 13,606 Other current assets 1,079 1,657 Cash 1,284 Prepaid expenses Accrued expenses payable 2,470 308 Spare parts, supplies, and fuel Other noncurrent liabilities 794 3,890 Long-term notes payable 1,890 Other current liabilities 2,339 Other noncurrent assets 3,152 Additional Paid-in Capital 1,207 Common stock ($0.10 par value) 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 $11,390 in cash and owed $38,304 on account. b. Purchased new equipment costing $3,834, signed a long-term note. c. Paid $11,864 cash to rent equipment and aircraft, with $6,136 for rent this year and the rest for rent next year.