Question

Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year): Account Property and equipment (net) Retained earnings Accounts payable Prepaid expenses Accrued expenses payable Long-term notes payable Other noncurrent assets Common stock ($0.10 par value) Balance Account $ 13,894 Receivables 9,606 Other current assets 1,257 Cash 108 Spare parts, supplies, and fuel 2,070 Other noncurrent liabilities 1,490 Other current liabilities 2,552 Additional Paid-in Capital Balance $ 1,549 879 884 394 3,290 1,939 607 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 $1,390 in cash and owed $24,704 on account. b. Purchased new equipment costing $3,434; signed a long-term note. c. Paid $7,864 cash to rent equipment and aircraft, with $3,136 for rent this year and the rest for rent next year. d. Spent $864 cash to repair facilities and equipment during the year. e. Collected $24,285 from customers on account. f. Repaid $150 on a long-term note (ignore interest). g. Issued 20 million additional shares of $0.10 par value stock for $16 (that's $16 million). h. Paid employees $9,276 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $6,564 cash. j. Used $6,450 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $784 on accounts payable. 1. Ordered $88 in spare parts and supplies. Required: 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.)

Answer 1

Journal entry

No	General Journal	Debit	Credit
a	cash	1390
	Account receivable	24704
	Service revenue		26094
b	Equipment	3434
	Notes payable		3434
c	Prepaid rent	7864
	Cash		7864
d	Repairs expense	864
	Cash		864
e	Cash	24285
	Account receivable		24285
f	Notes payable	150
	Cash		150
g	Cash	16
	Common Stock		16
h	Salaries expense	9276
	Cash		9276
i	Supplies	6564
	Cash		6564
j	Supplies expense	6450
	Supplies		6450
k	Account payable	784
	Cash		784
l	No journal entry