transactions. Assume that the following are account balances on December $31($end of the prior fiscal year$)$:

These accounts are not necessarily in good order and have normal debit or credit balances. $($Note: Because these are not all of UPS's

accounts, these will not balance in a trial balance.$)$ Assume the following transactions $($in millions, except for par value$)$ occurred the

next fiscal year beginning January $1($the current year$)$:

a$.$ Provided delivery service to customers, who paid $$3,890$ in cash and owed $$26,704$ on account.

b$.$ Purchased new equipment costing $$3,534$; signed a long$-$term note.

d$.$ Spent $$964$ cash to repair facilities and equipment during the year.

e$.$ Collected $$27,285$ from customers on account.

f$.$ Repaid $$200$ on a long$-$term note $($ignore interest$).$

g$.$ Issued $200$ million additional shares of $$0\mathrm{.}01$ par value stock for $$21($that$\text{'}$s $$21$ million$).$

h$.$ Paid employees $$10,526$ for work during the year.

i$.$ Purchased spare parts, supplies, and fuel for the aircraft and equipment for $$8,064$ cash.

j$.$ Used $$6,700$ in spare parts, supplies, and fuel for the aircraft and equipment during the year.

k$.$ Paid $$884$ on accounts payable.

I. Ordered $$98$ in spare parts and supplies.

Required:

Prepare journal entries for each transaction.

Enter the ending balances from December $31$ as the respective beginning balances for January $1$ of the current year. Record in the

T$-$accounts the effects of each transaction. Label each using the letter of the transaction.

Prepare an unadjusted income statement for the current year ended December $31.$

Compute the companv's net profit marain ratio for the current vear ended December $31\mathrm{.}2.$ Enter the ending balances from December $31$ as the respective beginning balances for January $1$ of the current year. Record in the T$-$accounts the effects of each transaction. Label each using the letter of the transaction. $3.$ Prepare an unadjusted income statement for the current year ended December $31.4.$Compute the company's net profit margin ratio for the current year ended December $31.$