[The following information applies to the questions displayed below.] Following are account balances (in millions of...

Transcribed Image Text:

[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) Balance $14,494 Account Balance Receivables $1,699 Retained earnings 10,206 Accounts payable 1,317 Other current assets Cash 909 944 Prepaid expenses 138 Spare parts, supplies, and fuel 457 Accrued expenses payable 2,130 Other noncurrent liabilities. 3,380 Long-term notes payable 1,550 Other current liabilities 1,999 Other noncurrent assets 2,642 Additional Paid-in Capital 697 Common stock ($0.10 par value) 4 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 $2,890 in cash and owed $25,904 on account. b. Purchased new equipment costing $3,494; signed a long-term note. c. Paid $8,464 cash to rent equipment and aircraft, with $3,586 for rent this year and the rest for rent next year. d. Spent $924 cash to repair facilities and equipment during the year. e. Collected $26,085 from customers on account. f. Repaid $180 on a long-term note (ignore interest). g. Issued 50 million additional shares of $0.10 par value stock for $19 (that's $19 million). h. Paid employees $10,026 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $7,464 cash. J. Used $6,600 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $844 on accounts payable. 1. Ordered $94 in spare parts and supplies. [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) Balance $14,494 Account Balance Receivables $1,699 Retained earnings 10,206 Accounts payable 1,317 Other current assets Cash 909 944 Prepaid expenses 138 Spare parts, supplies, and fuel 457 Accrued expenses payable 2,130 Other noncurrent liabilities. 3,380 Long-term notes payable 1,550 Other current liabilities 1,999 Other noncurrent assets 2,642 Additional Paid-in Capital 697 Common stock ($0.10 par value) 4 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 $2,890 in cash and owed $25,904 on account. b. Purchased new equipment costing $3,494; signed a long-term note. c. Paid $8,464 cash to rent equipment and aircraft, with $3,586 for rent this year and the rest for rent next year. d. Spent $924 cash to repair facilities and equipment during the year. e. Collected $26,085 from customers on account. f. Repaid $180 on a long-term note (ignore interest). g. Issued 50 million additional shares of $0.10 par value stock for $19 (that's $19 million). h. Paid employees $10,026 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $7,464 cash. J. Used $6,600 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $844 on accounts payable. 1. Ordered $94 in spare parts and supplies.