fari File Edit View History Window Help sWINOTR18 Quiz 2 Fol

fari File Edit View History Window Help s-WIN-OTR-18 Quiz 2 Following are account balances (n millions of dollars) from a recent FedEx annual report, followed by several typical transacti 31 (end of the prior fiscal yeari: Balance $15,943 Recelvables Property and equipment (net) Retained eamings Accounts payable Prepaid expenses Accrued expenses payable Long-term notes payable Other noncurrent assets Common stock ($0.10 par value) $ 4,681 630 2,368 479 5,676 1326 2,532 3,16 0ther current assets 1,742 Cash 349 Spare parts, supplies, and fuel 1,934 0ther noncurrent llablities 1707 Other current liabilities 3,617 Addisional Pald-in Capital 34 These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions the current year a. Provided delivery service to customers, receiving $22,704 in accounts receivable and $18,400 in cash. b. Purchased new equipment costing $3,474; signed a long-term note. c Paid $14,264 cash to rent equipment and aircraft, with $10,436 for rental this year and the rest for rental next year d. Spent $3,904 cash to maintain and repair facilities and equipment during the year e. Collected $25,485 from customers on account. f Repaid $370 on a long-term note (ignore interest) g. Issued 40 shares of additional stock for $18 h. Paid employees $15,776 during the year L Purchased for cash and used $9,164 in fuel for the aircraft and equipment during the year J. Paid $824 on accounts payable. k. Ordered $92 in spare parts and supplies 5 MacBook

Solution

a Cash 18400 Accounts Receivable 22704 Delivery service Revenue 41104 b Property and Equipment 3474 Note Payable 3474 c Rental Expense 10436 Prepaid Rental Expense 3828 Cash 14264 d Repair Expense 3904 Cash 3904 e Cash 25485 Accounts Receivable 25485 f Note payable 370 Cash 370 g Cash 720 Contributed Capital 720 h Wages Payable 15776 Cash 15776 i Fuel Expense 9164 Cash 9164 j Accounts Payable 824 Cash 824 K No entry Cash Beg 2368 c 14264 a 18400 d 3904 e 25485 f 370 g 720 h 15776 i 9164 j 824 bal 2671 Accounts Receivable Beg 4681 e 25485 a 22704 bal 1900 Parts/Supplies/Fuel Beg 479 Prepaid Expenses Beg 349 c 3828 bal 4177 Other Current Assets Beg 1326 Prop & Equip. (net) Beg 15943 b 3474 bal 19417 Delivery Service Revenue Beg 0 a 41104 Repair Expense Beg o d 3904 Fuel Expense Beg 0 i 9164 Other Non current Assets Beg 3617 Accounts Payable j 824 Beg 1742 bal 918 Accrued Expenses Payable Beg 1934 Other Current Liabilities Beg 1326 Long-term Notes payable f 370 Beg 1707 b 3474 bal 4811 Other Non-current Liabilities Beg 5676 Contributed Capital Beg 34 g 720 bal 754 Retained Earnings Beg 13116 Rental Expense Beg 0 c 10436 Wage Expense Beg 0 h 15776