(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): Balance $ 2,149 999 1,124 636 Account Balance Account Property and equipment $ 16,294 Receivables (net) Retained earnings 12,006 Other current assets Accounts payable 1,497 Cash Prepaid expenses Spare parts, supplies, 228 and fuel Accrued expenses payable Other noncurrent 2,310 liabilities Long-term notes payable 1,730 Other current liabilities Additional Paid-in Other noncurrent assets 2,912 Capital Common stock ($0.10 par 3 value) 3,650 2,179 967 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 $7,390 in cash and owed $31,904 on account. b. Purchased new equipment costing $3,674; signed a long-term note. c. Paid $10,264 cash to rent equipment and aircraft, with $4,936 for rent this year and the rest for rent next year. d. Spent $1,104 cash to repair facilities and equipment during the year. e. Collected $31,485 from customers on account. f. Repaid $270 on a long-term note (ignore interest). g. Issued 140 million additional shares of $0.10 par value stock for $28 (that's $28 million). h. Paid employees $12,276 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $10,164 cash. j. Used $7,050 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,024 on accounts payable. 1. Ordered $112 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. End. bal. Prepaid Expenses Spare Parts, Supplies, and Fuel Beg. bal. Beg. bal. End. bal. End. bal. Other Current Assets Beg. bal. Property and Equipment (net) Beg. bal. End. bal. End. bal. Accounts Payable Other Noncurrent Assets Beg. bal. Beg. bal. End. bal. End. bal. Accrued Expenses Payable Beg. bal. Other Current Liabilities Beg. bal. End. bal. End. bal. Long-Term Notes Payable Beg. bal. Other Noncurrent Liabilities Beg. bal. End. bal. End. bal. Common Stock Additional Paid-in Capital Beg. bal. Beg. bal. End. bal. End. bal. Retained Earnings Delivery Service Revenue Beg. bal. Beg. bal. End. bal. End. bal. Rent Expense Repair Expense Beg. bal. Beg. bal. End. bal. End. bal. Wage Expense Spare Parts, Supplies, and Fuel Expense Beg. bal. Beg. bal. End. bal. End. bal
