The following information applies to the questions displayed below.) following are account balances (in millions of dollars) from a recent StateEx annual eport, followed by several typical transactions. Assume that the following are account Jalances on May 31 (end of the prior fiscal year): Account Property and equipment (net) Retained earnings Accounts payable Prepaid expenses Accrued expenses payable Long-term notes payable Other noncurrent assets Common stock ($0.10 par value) Balance Account $ 17,094 Receivables 12,806 Other current assets 1,577 Cash 268 Spare parts, supplies, and fuel 2,390 Other noncurrent liabilities 1,810 Other current liabilities 3,032 Additional Paid-in Capital 2 Balance $ 2,349 1,039 1,204 715 3,770 2,259 1,087 "hese 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 he next fiscal year beginning June 1(the current year): a. Provided delivery service to customers, who paid $9,390 in cash and owed $35,104 on account. 9. Purchased new equipment costing $3,754; signed a long-term note. c. Paid $11,064 cash to rent equipment and aircraft, with $5,536 for rent this year and 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 $9,390 in cash and owed $35,104 on account. b. Purchased new equipment costing $3,754; signed a long-term note. c. Paid $11,064 cash to rent equipment and aircraft, with $5,536 for rent this year and the rest for rent next year. d. Spent $1,184 cash to repair facilities and equipment during the year. e. Collected $33,885 from customers on account. f. Repaid $310 on a long-term note (ignore interest). g. Issued 180 million additional shares of $0.10 par value stock for $32 (that's $32 million). h. Paid employees $13,276 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $11,364 cash. j. Used $7,250 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,104 on accounts payable. 1. Ordered $120 in spare parts and supplies. 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. 0 End. bal. 0 Spare Parts, Supplies, and Fuel Prepaid Expenses Beg. bal. Beg. bal. Required information Spare Parts, Supplies, and Fuel Prepaid Expenses Beg. bal. Beg. bal. End. bal. 0 End. bal. Other Current Assets Property and Equipment (net) Beg. bal. Beg, bal End, bal End, bal Other Noncurrent Assets Accounts Payable Beg. bal. Beg. bal. End. bal. End, bal. 0 Accrued Expenses Payable Other Current Liabilities Accrued Expenses Payable Other Current Liabilities Beg. bal. Beg. bal. End. bal. End. bal. Long-Term Notes Payable Other Noncurrent Liabilities Beg. bal. Beg. bal. End, bal. 0 0 End, bal Common Stock Additional Paid-in Capital Beg. bal. Beg. bal. 0 End. bal. End. bal. Retained Earnings Delivery Service Revenue Required information Retained Earnings Delivery Service Revenue Beg. bal. Beg. bal End. bal. 0 End. bal. 0 Rent Expense Repair Expense Beg. bal. Beg. bal. End. bal. End. bal. 0 + Wage Expense Beg. bal. Spare Parts, Supplies, and Fuel Expense Beg. bal End, bal. 0 End, bal. 0
