Following are selected account balances (in millions of dollars) from a recent UPS annual report, followed by several typical transactions. Assume that the following are account balances on December 31 (end of the prior fiscal year): Account Balance Account Balance Property, plant, and equipment (net) $16,294 Receivables $2,149 Retained earnings 12,006 Accounts payable 1,497 Other current assets Cash 999 1,124 Prepaid expenses Accrued expenses payable Long-term notes payable Other non-current assets 228 Spare parts, supplies, and fuel. 2,310 Other non-current liabilities 1,730 Other current liabilities 2,912 Additional Paid-in Capital 636 3,650 2,179 967 Common stock ($0.01 par value) 3 These accounts are not necessarily in good order and have normal debit or credit balances. (Note: Because these are not all of UPS's accounts, these will not balance in a trial balance.) Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning January 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 (a prepaid expense). 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 200 million additional shares of $0.01 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. Required: 1. Prepare journal entries for each transaction. 2. Enter the ending balances from December 31 as the respective beginning balances for January 1 of the current year. Record in the T-accounts the effects of each transaction. Label each using the letter of the transaction. 3. Prepare an unadjusted income statement for the current year ended December 31. 4. Compute the company's net profit margin ratio for the current year ended December 31.