The following are the summary account balances from a recent balance sheet of Exxon

Mobil Corporation. The accounts have normal debit or credit balances, but they are not

necessarily listed in good order. The amounts are shown in millions of dollars. Assume the

year$-$end is December $31,2010.$

This account is a combination of Contributed Capital and Retained Earnings.

The following is a list of hypothetical transactions for January $2011.$

a$.$ Purchased on account $$150,000,000$ of new equipment.

b$.$ Received $$500,000,000$ on accounts receivable.

c$.$ Received and paid $$1,000,000$ for utility bills.

d$.$ Earned $$5,000,000$ in sales on account with customers; cost of sales was

$$1,000,000.$

e$.$ Paid employees $$1,000,000$ for wages earned during the month.

f$.$ Paid half of the income taxes payable.

g$.$ Purchased $$23,000,000$ in supplies on account $($include in Inventories$).$

h$.$ Prepaid $$12,000,000$ to rent a warehouse next month.

i$.$ Paid $$10,000,000$ of other debt and $$1,000,000$ in interest on the debt.

j$.$ Purchased a patent $($an intangible asset$)$ for $$8,000,000$ cash.

Required:

Prepare journal entries for each transaction. Be sure to categorize each account as

an asset $($A$),$ liability $($L$),$ stockholders' equity $($SE$),$ revenue $($R$),$ or expense $($E$).$

Remember to check that debits equal credits and that the accounting equation is in

balance after each transaction. Note: record two transactions in $($d$),$ one for revenue

recognition and one for the expense.

Prepare T$-$accounts for December $31,2010,$ from the preceding list; enter the

beginning balances. You will need additional T$-$accounts for income statement

accounts; enter zero balances.

For each transaction, record the effects in the T$-$accounts. Label each using the letter

of the transaction. Compute ending balances.

Prepare an income statement, statement of stockholders' equity $($since contributed

capital and retained earnings are not separately reported$),$ balance sheet, and

statement of cash flows in good form.

Compute the company's total asset turnover ratio for the month ended January $31,$

What does it suggest to you about Exxon Mobil?