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, 2014: Account Balance Account Balance Property and equipment (net) $ 15,543 Receivables $ 4,581 Retained earnings 12,716 Other current assets 610 Accounts payable 1,702 Cash 2,328 Prepaid expenses 329 Spare parts, supplies, and fuel 437 Accrued expenses payable 1,894 Other noncurrent liabilities 5,616 Long-term notes payable 1,667 Other current liabilities 1,286 Other noncurrent assets 3,557 Additional Paid-in Capital 2,472 Common stock ($0.10 par value) 32 These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions (in millions) occurred the next year ending May 31, 2015:a. Provided delivery service to customers, receiving $21,704 in accounts receivable and $17,600 in cash.b. Purchased new equipment costing $3,434; signed a long-term note.c. Paid $13,864 cash to rent equipment and aircraft, with $10,136 for rental this year and the rest for rent next year.d. Spent $3,864 cash to maintain and repair facilities and equipment during the year.e. Collected $24,285 from customers on account.f. Repaid $350 on a long-term note (ignore interest).g. Issued 20 shares of additional stock for $16.h. Paid employees $15,276 during the year.i. Purchased for cash and used $8,564 in fuel for the aircraft and equipment during the year.j. Paid $784 on accounts payable.k. Ordered $88 in spare parts and supplies.Required:1&2 Prepare T-accounts for May 31, 2014, from the preceding list; Enter the respective beginning balances. For each transaction, record the 2015 effects in the T-accounts. Label each using the letter of the transaction.Compute ending balances. (Enter your answers in millions not in dollars.)3. Prepare an income statement for the period ended May 31, 2015. (Enter your answers in millions not in dollars.)