Required:

Prepare journal entries for each transaction.

Enter the ending balances from December $31$ as the respective beginning balances for January $1$ of the current year. Record in the

T$-$accounts the effects of each transaction. Label each using the letter of the transaction.

Prepare an unadjusted income statement for the current year ended December $31.$

Compute the company's net profit margin ratio for the current year ended December $31.$

Complete this question by entering your answers in the tabs below.

Prepare journal entries for each transaction.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter amounts in

millions, not dollars.Following are selected account balances $($in millions of dollars$)$ from a recent UPS annual report, followed by several typical transactions. Assume that the following are account balances on December $31($end of the prior fiscal year$)$:

Account Balance Account Balance

Property, plant, and equipment $($net$)$ $$15,294$ Receivables $$1,899$

Retained earnings $11,006$ Other current assets $949$

Accounts payable $1,397$ Cash $1,024$

Prepaid expenses $178$ Spare parts, supplies, and fuel $536$

Accrued expenses payable $2,210$ Other non$-$current liabilities $3,500$

Long$-$term notes payable $1,630$ Other current liabilities $2,079$

Other non$-$current assets $2,762$ Additional Paid$-$in Capital $817$

Common stock $($$$0\mathrm{.}01$ par value$)3$

These accounts are not necessarily in good order and have normal debit or credit balances. $($Note: Because these are not all of UPS's accounts, these will not balance in a trial balance.$)$ Assume the following transactions $($in millions, except for par value$)$ occurred the next fiscal year beginning January $1($the current year$)$:

Provided delivery service to customers, who paid $$4,890$ in cash and owed $$27,904$ on account.

Purchased new equipment costing $$3,574$; signed a long$-$term note.

Paid $$9,264$ cash to rent equipment and aircraft, with $$4,186$ for rent this year and the rest for rent next year $($a prepaid expense$).$

Spent $$1,004$ cash to repair facilities and equipment during the year.

Collected $$28,485$ from customers on account.

Repaid $$220$ on a long$-$term note $($ignore interest$).$

Issued $200$ million additional shares of $$0\mathrm{.}01$ par value stock for $$23($that$$s $$23$ million$).$

Paid employees $$11,026$ for work during the year.

Purchased spare parts, supplies, and fuel for the aircraft and equipment for $$8,664$ cash.

Used $$6,800$ in spare parts, supplies, and fuel for the aircraft and equipment during the year.

Paid $$924$ on accounts payable.

Ordered $$102$ in spare parts and supplies.

Required:

Prepare journal entries for each transaction.

Enter the ending balances from December $31$ as the respective beginning balances for January $1$ of the current year. Record in the T$-$accounts the effects of each transaction. Label each using the letter of the transaction.

Prepare an unadjusted income statement for the current year ended December $31.$

Compute the company's net profit margin ratio for the current year ended December $31.$