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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$)$ $$17,094$ Receivables $$2,349$

Retained earnings $12,806$ Other current assets $1,039$

Accounts payable $1,577$ Cash $1,204$

Prepaid expenses $268$ Spare parts, supplies, and fuel $715$

Accrued expenses payable $2,390$ Other non$-$current liabilities $3,770$

Long$-$term notes payable $1,810$ Other current liabilities $2,259$

Other non$-$current assets $3,032$ Additional Paid$-$in Capital $1,087$

Common stock $($$$0\mathrm{.}01$ par value$)2$

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$)$:

Provided delivery service to customers, who paid $$9,390$ in cash and owed $$35,104$ on account.

Purchased new equipment costing $$3,754$; signed a long$-$term note.

Paid $$11,064$ cash to rent equipment and aircraft, with $$5,536$ for rent this year and the rest for rent next year $($a prepaid expense$).$

Spent $$1,184$ cash to repair facilities and equipment during the year.

Collected $$33,885$ from customers on account.

Repaid $$310$ on a long$-$term note $($ignore interest$).$

Issued $200$ million additional shares of $$0\mathrm{.}01$ par value stock for $$32($that$$s $$32$ million$).$

Paid employees $$13,276$ for work during the year.

Purchased spare parts, supplies, and fuel for the aircraft and equipment for $$11,364$ cash.

Used $$7,250$ in spare parts, supplies, and fuel for the aircraft and equipment during the year.

Paid $$1,104$ on accounts payable.

Ordered $$120$ in spare parts and supplies.

Required:

Prepare journal entries for each transaction.

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.

Prepare an unadjusted income statement for the current year ended December $31.$

Compute the company's net profit margin ratio for the current year ended December $31.$

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