Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.] Following are account balances (in millions of dollars) from a recent StateEx annual report, followed

image text in transcribedimage text in transcribed

[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 Balance $17,894 Account Balance Receivables $2,549 Accounts payable Prepaid expenses 13,606 Other current assets Cash 1,079 Accrued expenses payable Long-term notes payable Other noncurrent assets 3,152 1,657 308 Spare parts, supplies, and fuel 2,470 Other noncurrent liabilities 1,890 Other current liabilities Additional Paid-in Capital 1,284 794 3,890 2,339 1,207 Common stock ($0.10 par value) 1 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. d. Spent $1,264 cash to repair facilities and equipment during the year. e. Collected $36,285 from customers on account. f. 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). h. Paid employees $14,276 for work during the year. i. 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. Paid $1,184 on accounts payable. I. Ordered $128 in spare parts and supplies.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Management Accounting

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

16th edition

978-0133058819, 9780133059748, 133058816, 133058786, 013305974X , 978-0133058789

More Books

Students also viewed these Accounting questions