Following are account balances (in millions of dollars) from a recent StateEx annual report, followed by several
Fantastic news! We've Found the answer you've been seeking!
Question:
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 | Account | Balance | |||
Property and equipment (net) | $ | 18,694 | Receivables | $ | 2,749 | |
Retained earnings | 14,406 | Other current assets | 1,119 | |||
Accounts payable | 1,737 | Cash | 1,364 | |||
Prepaid expenses | 348 | Spare parts, supplies, and fuel | 878 | |||
Accrued expenses payable | 2,550 | Other noncurrent liabilities | 4,010 | |||
Long-term notes payable | 1,970 | Other current liabilities | 2,419 | |||
Other noncurrent assets | 3,272 | Additional Paid-in Capital | 1,327 | |||
Common stock ($0.10 par value) | 5 | |||||
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):
- Provided delivery service to customers, who paid $13,390 in cash and owed $41,504 on account.
- Purchased new equipment costing $3,914; signed a long-term note.
- Paid $12,664 cash to rent equipment and aircraft, with $6,736 for rent this year and the rest for rent next year.
- Spent $1,344 cash to repair facilities and equipment during the year.
- Collected $38,685 from customers on account.
- Repaid $390 on a long-term note (ignore interest).
- Issued 260 million additional shares of $0.10 par value stock for $40 (that’s $40 million).
- Paid employees $15,276 for work during the year.
- Purchased spare parts, supplies, and fuel for the aircraft and equipment for $13,764 cash.
- Used $7,650 in spare parts, supplies, and fuel for the aircraft and equipment during the year.
- Paid $1,264 on accounts payable.
- Ordered $136 in spare parts and supplies.
Required:
Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter amounts in millions, not dollars.)
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
Posted Date: