P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income
Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 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): 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 $12,890 in cash
and owed $40,704 on account. b. Purchased new equipment costing $3,894; signed a long-term
note. c. Paid $12,464 cash to rent equipment and aircraft, with $6,586 for rent this year and the
rest for rent next year. d. Spent $1,324 cash to repair facilities and equipment during the year. e.
Collected $38,085 from customers on account. f. Repaid $380 on a long-term note (ignore
interest). g. Issued 250 million additional shares of $0.10 par value stock for $39 (that's $39
million). h. Paid employees $15,026 for work during the year. 1. Purchased spare parts, supplies,
and fuel for the aircraft and equipment for $13,464 cash. 1. Used $7,600 in spare parts, supplies,
and fuel for the aircraft and equipment during the year. k. Paid $1,244 on accounts payable. 1.
Ordered $134 in spare parts and supplies.
(1) Required information.
P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, P.pdf
1. P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income
Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 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): 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 $12,890 in cash
and owed $40,704 on account. b. Purchased new equipment costing $3,894; signed a long-term
note. c. Paid $12,464 cash to rent equipment and aircraft, with $6,586 for rent this year and the
rest for rent next year. d. Spent $1,324 cash to repair facilities and equipment during the year. e.
Collected $38,085 from customers on account. f. Repaid $380 on a long-term note (ignore
interest). g. Issued 250 million additional shares of $0.10 par value stock for $39 (that's $39
million). h. Paid employees $15,026 for work during the year. 1. Purchased spare parts, supplies,
and fuel for the aircraft and equipment for $13,464 cash. 1. Used $7,600 in spare parts, supplies,
and fuel for the aircraft and equipment during the year. k. Paid $1,244 on accounts payable. 1.
Ordered $134 in spare parts and supplies.
(1) Required information
![P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income
Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 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): 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 $12,890 in cash
and owed $40,704 on account. b. Purchased new equipment costing $3,894; signed a long-term
note. c. Paid $12,464 cash to rent equipment and aircraft, with $6,586 for rent this year and the
rest for rent next year. d. Spent $1,324 cash to repair facilities and equipment during the year. e.
Collected $38,085 from customers on account. f. Repaid $380 on a long-term note (ignore
interest). g. Issued 250 million additional shares of $0.10 par value stock for $39 (that's $39
million). h. Paid employees $15,026 for work during the year. 1. Purchased spare parts, supplies,
and fuel for the aircraft and equipment for $13,464 cash. 1. Used $7,600 in spare parts, supplies,
and fuel for the aircraft and equipment during the year. k. Paid $1,244 on accounts payable. 1.
Ordered $134 in spare parts and supplies.
(1) Required information](https://image.slidesharecdn.com/p3-6algoanalyzingtheeffectsoftransactionsusingt-accountsp-230402032958-fd744982/85/P3-6-Algo-Analyzing-the-Effects-of-Transactions-Using-T-Accounts-P-pdf-1-320.jpg)
