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 1. 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. Pald employees $14,276 for work during the year. 1. 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. 1. Ordered $128 in spare parts and supplies 3. Prepare an unadjusted income statement for the current year ended May 31. Cash Receivables of 4 Beg, bal Beg. bal End, bal. bok nt End., bal. Spare Parts, Supplies, and Fuel Propaid Expenses Beg, bal Beg, bal End, bal End. bal Other Current Assets Property and Equipment (net) Beg, bal Beg, bal End, bal 0 End. bal Other Noncurrent Assets Accounts Payable Beg, bal Beg. bal. End, bal End, bal Accrued Expenses Payable Other Current Liabilities Beg, bal Beg, bal End, bal 0 End, bal. 0 Long-Term Notes Payable Other Noncurrent Liabilities Beg, bal Beg bal End, bal 0 End, bal Common Stock Additional Paid-in Capital Beg, bal Beg bal End, bal 0 End, bal 0 Retained Earnings Delivery Service Revenue End, bal. 0 End. bal. 0 Retained Earnings Delivery Service Revenue Beg. bal Beg. bal End. bal 0 End. bal. 0 Rent Expense Repair Expenso Beg, bal Beg, bal. End, bal. 0 End, bal Wage Expense Beg bal. Spare Parts, Supplies, and Fuel Expense Beg, bal End, bal End, bal. Required information P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio L03-4, 3-5, 3-6 [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 Balance Property and equipment (net) Account Balance $ 17,894 Receivables $2,549 Retained earnings 13,606 Other current assets 1,079 Accounts payable 1,657 Cash 1,284 Prepaid expenses 308 Spare parts, supplies, and fuel 794 Accrued expenses payable 2, 470 Other noncurrent liabilities 3,890 Long-term notes payable 1,890 Other current llabilities 2,339 Other noncurrent assets 3,152 Additional Paid-in Capital Common stock (58.10 par value) 1,207 1 These accounts are not necessarily in good order and have normal debitor credit balances. Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning June 1(the current year)
