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 years Account Balance Account Balance Property and equipment (net) 517,894 Receivables Betained earnings $2.549 13,606 Other current assets Accounts payable 1.079 1,657 Cash 1,284 Prepaid expenses 308 Spare parts, supplies, and fuel Accrued expenses payable 2.470 other noncurrent liabilities 3,90 Long-term notes payable 1.890 Other current liabilities 2,339 Other noncurrent assets 3,152 Additional Paid-in Capital 1,202 Common stock 150.10 por value 794 These accounts are not necessarily in good order and have normal debitor credit balances Assume the following transactions in millions, except for par value) occurred the next fiscal year beginning June 1 the current year's 2. 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 $6136 for rent this year and the rest for rent next year, d. Spent $1,264 cash to repair facilities and equipment during the year Collected $36.285 from customers on account Repaid $350 on a long-term note (ignore interest), Issued 220 million additional shares of $0.10 par value stock for $36 (that's $36 million), Pald employees $14.276 for work during the year Purchased spare parts, supplies, and fuel for the aircraft and equipment for $12,564 cash Used $7.450 in spare parts, supplies, and fuel for the aircraft and equipment during the year, These accounts are not necessarily in good order and have normal debitor 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 d. Spent $1,264 cash to repair facilities and equipment during the year. 0. Collected $36,285 from customers on account Repaid $350 on a long-term note (ignore interest), g. Issued 220 million additional shares of $0.10 par value stock for $36 (that's $36 million). n. Paid employees $14,276 for work during the year. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $12,564 cash J. Used $7,450 in spare parts, supplies, and fuel for the aircraft and equipment during the year k. Pald $1,184 on accounts payable. Ordered $128 in spare parts and supplies P3-6 Part 2 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 Receivables Beg bal Beg bal End bal End bal Spare Parts, Supplies, and Fuel Prepaid Expenses Beg bal. Bog bat End, bal 0 End, bal Other Current Assets Property and Equipment (net) Beg bal Beg bol Required information Other Noncurrent Assets Accounts Payable Beg bat Beg. bal 0 Endbal 0 End, bal Accrued Expenses Payable Other Current Liabilities Beg bal Beg bal End, bal 0 0 End. bal. Long-Term Notes Payable Other Noncurrent Liabilities Beg bal Beg. bal 0 End, bal 0 End, bal Common Stock Additional Paid-in Capital Beg, bal Beg bal 0 End, bal 0 End, bal Retained Earnings Delivery Service Revenue Bea, bal Bec bal Rent Expense Repair Expense Beg. bal. Beg. bal. End. bal. 0 End, bal 0 Wage Expense Spare Parts, Supplies, and Fuel Expense Beg, bal Beg, bal 0 End. bal. 0 End, bal