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Following are account balances (in millions of dollars) from a recent State Ex 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 $ 16,294 Receivables $ 2,149 (net) Retained earnings 12,006 Other current assets 999 Accounts payable 1,497 Cash 1,124 Prepaid expenses 228 Spare parts, supplies, 636 and fuel Accrued expenses payable 2,310 Other noncurrent liabilities 3,650 Long-term notes payable 1,730 other current liabilities 2,179 Other noncurrent assets 2,912 Additional Paid-in 967 Capital Common stock ($0.10 par 3 value) 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. 1. 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.) View transaction list Journal entry worksheet Provided delivery service to customers, who paid $7,390 in cash and owed $31,904 on account. Note: Enter debits before credits. General Journal Debit Credit Transaction a. Record entry Clear entry View general journal View transaction list Journal entry worksheet Purchased new equipment costing $3,674; signed a long-term note. Note: Enter debits before credits. Transaction General Journal b. Debit Credit Record entry Clear entry View general journal Journal entry worksheet Paid $10,264 cash to rent equipment and aircraft, with $4,936 for rent this year and the rest for rent next year. Note: Enter debits before credits. General Journal Debit Credit Transaction c. Record entry Clear entry View general journal Journal entry worksheet Spent $1,104 cash to repair facilities and equipment during the year. Note: Enter debits before credits. Transaction General Journal d. Debit Credit Record entry Clear entry View general journal Journal entry worksheet Collected $31,485 from customers on account. Note: Enter debits before credits. Transaction General Journal e. Debit Credit Record entry Clear entry View general journal Journal entry worksheet Issued 140 million additional shares of $0.10 par value stock for $28 (that's $28 million). Note: Enter debits before credits. Transaction General Journal g. Debit Credit Record entry Clear entry View general journal Journal entry worksheet Paid employees $12,276 for work during the year. Note: Enter debits before credits. Transaction General Journal h. Debit Credit Record entry Clear entry View general journal > Journal entry worksheet Used $7,050 in spare parts, supplies, and fuel for the aircraft and equipment during the year. Note: Enter debits before credits. Transaction General Journal Debit Credit j. Record entry Clear entry View general journal Journal entry worksheet Paid $1,024 on accounts payable. Note: Enter debits before credits. Transaction General Journal k. Debit Credit Record entry Clear entry View general journal Journal entry worksheet

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